Current price: 4058
Key point: 4040
Our preferred strategy: Buy positions above 4040 with a first target of 4140 and then a second target of 4200.
Alternative scenario: Stop loss and trend reversal upon breaking the 4020 level, targeting the 3960 level.
Technical commentary
Gold managed to rise from the support levels of 3960-3940 and break through the descending trend line extending from the peak of last June. By holding above the 4040 levels, and if it breaks through the 4080 levels, gold will then head towards the 4140 levels and then the 4200 levels.
