Gold: Support at 1272/1258.50, resistance at 1284.60/1297.50

London (Feb 2)  After Thursday’s sell-off, Friday’s rally was significant and looks to have reinforced the medium term support band $1252/$1255. However on a near term perspective, although a sharp move to the downside has been retraced there is still a sequence of lower highs on the gold price which needs to be overcome for the bulls to be in control again.

With resistance forming at $1284.50, the high at $1297.50 remains intact and for now the rebound is consolidating. The move today could therefore define for the near term who is in control. If the reaction is to take profit on Friday’s move then it would suggest the medium term buyer may not have taken part in the rally. The support around $1272 will be a interesting line in the sand now.

Source: FXstreet