Gold markets were relatively quiet during last week, considering how much news flow we've witnessed. With that being the case, we may be finding a bit of a bottom for the market, and the $1200 level will be something to pay attention to. This is actually good news for gold, as it had been selling off so relentlessly over the last couple of months. The question now is whether or not we will break below the $1200 level. However, with all the turmoil and selling happening in the world, the precious metal might finally start building some momentum to the upside.
Technically, Gold is now in a oversold state while prices are finding support from the $1205 support level. A bounce off this level to the upside seems more likely before any extension to the downside can be seen. Our next level to focus on is the $1200 area.
Support: 1205.73 1197.75
Resistance: 1214.15 1217