Gold - Making New Highs
Gold continues to bounce, as can be seen by the move above the resistance at 1242 (see also the 38.2% retracement). Another resistance stands at 1258 (09/09/2014 high), while a key resistance lies at 1277. The short-term momentum is positive as long as the hourly support at 1232 holds. Another hourly support can be found at 1222 (15/10/2014 low).
In the long-term, despite the successful test of the strong support at 1181 (28/06/2013 low), the underlying downtrend and the recent 4-year lows in silver favour an eventual break lower. The resistance at 1277 (04/09/2014 high) is likely to cap any rebound in prices. Other supports can be found at 1157 (28/07/2010 low) and 1045 (05/02/2010 low).