After an initial drop to the level 1278, the gold seems to have regained a new bullish momentum and turned positive for the second session in a row.
At present, the gold operates around the level 1284, and touched the highs of the session in the last hour, with an atmosphere prevailing cautious, waiting for the crucial first round of the French presidential election, which pushed the gold to a safe haven.
Meanwhile, a sense of sale positive around the stock market european did little to extend any additional support. In addition, the u.s. dollar stronger, which tends to decrease the demand of raw materials denominated in dollars, seems to also work together to limit the movement of the metal.
Looking at the broader picture, the action of the price of the metal in the last week could be categorized as a consolidation phase before the next stage of directional movement.
Meanwhile, the economic agenda of the current united States with the publication of existing home sales and the reports of the PMI could provide some trading opportunities short-term earlier today during the american session.
Technical levels to watch
In a move sustained above the level of 1285, the upward movement could extend towards the immediate resistance at 1288 on the path to maximum of several months, near 1294-95 and 1300 (psychological level).
Meanwhile, on the negative side, a decline below the level of 1280 could continue to find support near the level 1275, which if broken could trigger a landslide corrective to the short term towards the strong support located in 1262-61, with some support intermediate near 1272.