Gold Loses Some Steam at Current Resistance Level

Gold (1235.89)

The yellow metal has shot higher. We wrote how we formed a piercing line pattern, on the chart below, then reversed course and shot higher. Gold is now challenging the resistance level neat $1,236.80 per ounce. It looks like it is losing steam.

Should the precious metal break above 1,236.80, we will challenge the technical level of 1,250.50 then 1,252.90. The alternative view, should we lose steam and see a confirmed bearish reversal with a close lower today, we would then need a close below 1,215.80. If this happens, we would then challenge the next support level at 1,203.50.