While Gold has had a nice recovery off the recent lows and managed to climb back above the psychological resistance level of $1600, it is nowhere near out of the woods as of yet until it can AT THE MINIMUM push back above the resistance level noted in blue on the chart. That comes in near $1625. Technicians will be watching to see if it could then muster enough buying to take it above $1650. There are a fair number of buy stops located above there which market bulls would love to set off. Whether or not gold could reach them is as of yet unclear.
For now the technicals are bearish so many will be looking at rallies as selling opportunities whether for unloading stale and/or underwater long positions or to initiate new short positions.
Bulls are attempting to hold the line here but they have more work to do.
