August 19, 2013 – Gold (daily chart) has tentatively held on to its recovery of the past month and a half, establishing a new two-month high and, for the time being, staying above the 1345 level that it broke out above late last week.  Although the price of gold starts the current week with some hesitation and a consolidative pullback after recent gains, the market’s momentum suggests a potential further recovery from the multi-year lows established in June. If the current pullback is able to stay above the noted 1345 support level, a resumption of the recent bullishness should target major initial resistance objectives around the 1425 and 1475 price regions. This potential continuation of the recovery would provide a strong indication that gold has bottomed out and is seeking to recapture the lofty levels enjoyed before the sustained plunge that began last year.
James Chen, CMT
Chief Technical Strategist
City Index Group
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