Current price: 4040
Key point: 4045
Our preferred strategy: Buy positions above 4050 with a first target of 4185 and then a second target of 4245.
Alternative scenario: Stop loss and trend reversal upon breaking the 4010 level, targeting the 3980 level.
Technical commentary
Gold fell last week from levels of 4245 to reach the pivotal support levels of 4010-4045 and the upward trend line from the low of last September.
If the price breaks through the 4045 level and the 200-period moving average on the four-hour timeframe, gold will then head towards the 4185 level and subsequently the 4245 level.
