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Gold is Testing Some Key Support Factors

The 10/22 session brought back some USD-strength across the board and gold priced in the dollar (xau/usd) retreated from its October high of 1255.32 down to just above 1240 by the start of the 10/23 session. 

Gold (XAU/USD) 10/22(click to enlarge)

The 4H chart shows that this dip is still within the October uptrend, but does bring gold to a cluster of support factors.
1) There is a rising speedline from the 1205 10/7 low.
2) Price is testing the 50-period SMA.
3) There is a resistance pivot at 1238.20.

If price holds above 1240, the October rally is still intact and the bullish outlook is still in play with pressure toward the 1255.23 level and possible higher.

However, if gold falls below 1238, it starts to shift the mode. It might not signal bearish continuation yet though because we still have higher highs and higher lows. A break below 1230 on the other hand will be a stronger bearish signal as it would mark the first lower low of significance in October. Then, we should turn to see if a subsequent pullback will hold below 1240. If it does, the bearish continuation attempt is probably in progress.