Gold seems to have found support at 1240, where we saw accumulation form, and has been rallying since. Gold closed the week forming a morning star pattern off the bottom trendline of an ascending triangle. It faces imminent resistance at 1280 -- the top resistance line of the aforementioned triangle -- and the 50 SMA just above that.
Technically, the stage is set for the next big battle between the bears and bulls in gold. $1280 remains the key level to watch for XAU/USD. I initially thought that bears would be pretty decisive in defending resistance at 1280, but the technicals going into next week leave me unsure in the near term. Of course, I remain bullish in the long-run and am buying between 1180 and 1280, and will likely continue to buy a bit more should we rally beyond 1280.
