Yesterday's rebound of gold from the $4160 support level and its subsequent movement to the upside favor the bulls. Nevertheless, before being confident in a continued rise of the precious metal, it would be prudent to wait for confirmation above the strong resistance at $4250. In this case, gold may break the weekly high near $4270 and aim for the round level of $4300.
On the other hand, a decline below the round level of $4200 will attract buyers and find solid support ahead of the $4150 level. This level will become a key pivot point — breaking it would push gold down to the round level of $4100, en route to the confluence support zone at $4075, then toward the 50-day SMA and lower. But as long as the daily oscillators remain positive, the bulls have nothing to worry about.
