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Gold jumps to test key level

In the last hour, gold has jumped sharply higher - undoubtedly, driven by short-side profit-taking ahead of the key central bank meetings in the week ahead.

Gold is now re-testing the level where it sold off from originally, namely around 1680ish. I think there is a very good chance it could head back down from here, because fundamentally nothing has changed.

Let's see if the sellers will step in here to defend their ground once again... or whether the short-squeeze can turn into a proper rally. I think it will be the former case.

By Fawad Razaqzada
GoldTrend Analysis

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