Last week we said : “Gold benefited from the strong dollar sell off last week and is now capitalizing on this move to climb higher. The recent break above 1185$ resistance opens the way for more upside potential. On the daily chart, to the exception of the 1200$ key psychological level, we see 1212$ as the start of a key resistance zone. To the downside, 1150$ remains a strong support. Our bias for the week is neutral.”
Is gold bouncing? It looks like the precious metal is in a bounce phase continuation since the lows right below 1150$ and is now on the verge to start a second leg up (see price rejection at 1185$) in case the price would gather more momentum it could go to 1212$ in a first time and even higher to 1221$ ultimately. To the downside, 1185$ is a pretty key support and in case it is broken then the price would reach 1170$. Our bias for the week is slightly bullish.