GOLD Hits 3 Month High, But Still Not Out of The Water Yet

Gold's price saw a sharp bullish reversal last week, as investor fly to safe heaven assets amid a global stock market correction. Although price has moved to the highest level in 3 months, there is strong resistance ahead. Look closely to risk-oriented assets like equities and oil, as recoveries in these assets will be bearish for gold.

Trade Step-ups:

Scenario One (Bearish Reversal): Price rejects a bearish breakout from the channel. Look for potential move to test the support level of the channel. Profit levels to look for are 1200.00 and 1190.00 respectively.

Scenario Two (Bullish Breakout): Price consolidates above 1235.00, bullish breakout confirmed.