Does gold want to keep climbing?

By Julian Yosovitch

http://www.futuresmag.com/2014/07/10/does-gold-want-to-keep-climbing

Gold (COMEX:GCQ14) has recovered important positions and trades at $1,325 on Wednesday.

The metal is facing a major resistance at $1,335 coinciding with previous highs and the 61.8% Fibonacci level of the last sell-off.

With the break above $1,335 we will see further gains towards higher resistance at $1,360. Even with a view to return to the previous maximums of $1,391 and important medium-term hurdle for metal.

If trading turns bearish, gold finds support at the $1,300-1,295 area. However, if price levels breach $1,275, this would potentially signal a bullish trend. Otherwise we can see a larger selloff, being near previous lows of $1,240-1,230 which is the key short-term support for gold.

Only with a direct fall below 1,230 will the metal remain vulnerable to extend the losses, finding the $1,180 key medium-and-long-term support.

About the Author

Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).

He holds a Bachelor of Business Administration and a Professor Master in Finance (UDESA). He is also a Capital Markets Specialist (UBA-IAMC) and Financial Markets Analyst - Ruarte´s Reports Trader. Follow his blogs here, and folow him on Twitter @julianyosovitch.