Gold continues yesterday's consolidation. Gold is trading within a price range and the boundaries are clearly defined. If a breakout occurs to the upside or downside, there is high probability that a small trend will start.

The lower support level is at 1,311-12 and the upper resistance level is at 1,324-25. If prices break the support, then we expect prices to move towards the 1,290-95 price level, where the previous resistance trendline is. This could very well be a back test of the previous resistance that is now support. If prices break above 1,325, then we should anticipate a move towards the 1,333-35 resistance level.

The daily chart shows us that prices have paused the rise at the 1,325 resistance that is placed by our Moving average. The downward longer-term trend is still intact and in order to change the trend to upward, bulls will need to push prices above 1,325 and test the 1,375 resistance. Stop for bulls is the 1,250-70 price area. If broken, expect prices to move towards 1,180-1,150.