Gold Continues to Inch Higher but will it Continue?

Gold ($1,199.20)

The yellow metal continues its uneven recovery higher after bouncing off the support near 1131.64. Please refer to the above daily MT 4 chart. We are now challenging the 1200.00 handle with a break above targeting 1212.20. A daily close above the latter level will challenge the technical resistance level at 1226.80. Should we reverse course and move back lower, then we need to close below the congestion zone at 1178.85 to 1180.85. If this happens then we will challenge the support near 1161.50.

Let us now look at the below 4 hour chart. We note some Dojis forming at the 1200.00 handle. This indicates buyer hesitation to take gold higher. We need a close above $1,200 per ounce before making a decision to strongly buy into this rally. Couple this with the medium term bearish trend and the jagged, uneven recovery, I opt to stand aside for now.

Trading advice is for educational purpose only and does not constitute trade recommendations. Always do your own technical analysis to support mine.