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Gold Maintaining the Bullish Bias

Gold was starting to show signs of bearish continuation when it broke below October's rising trendline. However, ugly US data gave the USD a smack and assets priced in the USD, like gold, rallied. 

Gold (XAU/USD) 4H Chart 10/16(click to enlarge)

The rally pushed to a new high on the month at 1250. We can see in the 4H chart that price is now back above the SMAs, and the RSI held above 40, showing maintenance of the bullish momentum. 

There is a minor pivot at 1238.20. If price can hold above 1238 today, the pressure remains on 1250, and further upside. A break below 1238 might introduce another bearish attempt, but a break below might be needed to revive the bearish outlook.

The daily chart shows a bullish engulfing pattern from yesterday's candle, which suggests further upside in the short-term.

While gold looks bullish in October, we have to respect the downtrend since July's high at 1345. The daily chart shows that if price approaches the 1270 area, it will be testing a previous support/pivot, but mostly common support. It will also likely test the falling trendline from July's high. Here, if the RSI also tests 60 and stalls, we should expect a bearish attempt. 

Gold (XAU/USD) Daily Chart 10/16(click to enlarge)