Gold (daily chart shown below) has begun a tentative recovery within the past week that has pushed the precious metal back up to its 50-day moving average.
This occurs after a plunge during the latter half of March that brought the price of gold down sharply from its six-month high of 1392 in mid-March to hit a low of 1277 at the very beginning of April.
That low represented a decline of more than 50% of the bullish trend that dominated the first three-and-a-half months of 2014, which had previously brought gold up from a double-bottom, multi-year low at around 1180 at the very end of 2013.
When the noted high of 1392 was reached more than three weeks ago, the 50-day moving average made a conspicuous cross above the 200-day moving average, a bullish indication that had not been seen since late 2012.
With the current recovery of gold from its 50% pullback tentatively in place, the technical bias remains to the upside after the precious metal potentially bottomed out in 2013.
Further upside momentum that breaks out significantly above the 50-day moving average should continue to target major upside resistance at the key 1425 area.
Downside support currently continues to reside around the major 1265 support level.
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