Gold at Historical Resistance

Gold reached a milestone in today's early trading hours. The precious metal climbed up to $1,357 - highest since March 2014. The peak meets two resistance lines - the major one dates back to the all time high of $1,920 and the second one is the one marking the latest low of $1,046.

Considering the importance of the levels forming the two channels, Gold is now facing one of its hardest decisions. Bears have already accumulated enough momentum to wipe out all the short positions but on the other hand we have two great resistance levels that are being met at the exact current price.

My personal trade - since I'm long I hedged today with a short opened at $1,352 with a stop at $1,365. If price reaches $1,365 the chances for a decline are small as this is going to be above the two resistance levels.

And if price reacts to those levels and retreats to below $1,340 we have a great chance to see Gold around $1,240-$1,200.

What bothers me, however, is that price already reached this level after the Brexit results were published. Being here again today means bulls are back to get what's theirs.

Chart: XAU/USD W1