Since the beginning of the year the commodity gained more than 13.0% plus this past week rose over 2.0% and made a phase change, shifting from a warning to a bullish phase.
Last week the precious metal rallied with a wide range and closed near the high of the week, in addition the commodity managed to close above the previous week high, which suggests a strong bullish momentum.
Gold seems to have ended its downward retracement after it found enough support at 1,263.08 a Fibonacci retracement to bounce off it and resume its upward trend.
The stochastic is showing a weak bullish momentum although is still above the 50 mid line.
Expecting an upward move to a Fibonacci retracement level at 1,321.41 on a break above the previous week high at 1,303.71 (scenario 1) however a bounce from the Fibonacci retracement level at 1,321.41 may trigger some profit taking to the higher end of the weekly support at 1,307.45 (scenario 2).