Money managers aggressively increased exposure on Gold back into net long territory for the first time since early August as shorts covered and new longs entered. However, this does not rule out a structural shift in Dollar's strength as bulls are back to try and break above the 96 handle. Geopolitical risks are on the rise especially between the US and Saudi Arabia and all eyes are set on the next move which could reflect negatively on the greenback.
Gold prices are still trading in the same range and still attempt to break above the $1230 level. The price is currently hovering below the $1227 level, but a break above the $1228.3 will help retest the recent highs at $1233.15. This consolidation is preparing for that break unless the $1220 level is violated to the downside.
Support: 1180.6 1177.69
Resistance: 1184.86 1188.8