Gold immediately gapped higher on its reopening for trade Sunday evening in Asia (Monday morning there). I am impressed by the fact that the gap was over and through the strong resistance level that had been blocking the market from moving higher last Friday. That level was near $1422 - $1424. Thus far it has not even gone back down to retest the gap breakout. While it is still early in the session, this is significant because it reveals that the buying is of a nature that it is not abating.
Resistance has formed at $1435 however. If gold can punch
through this level as the day wears on, it looks to me like it is going to make a run to the all time high just above $1440.
Volume is decent but I would like to see it a bit stronger to be honest. It suggest a bit of hesitancy to take it through $1435 at this stage.
Support now moves to the level just below the gap from last evening. That comes in near $1420 on the downside. Bulls will not want to see it fail there should it attempt a setback and retest of the gap.
Technical indicators are positive at this time. They are also reflecting the resistance at $1435 however.
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