The gold fever is spreading but in the last few hours speculators hit bullish bets, pulling down the price from the fresh 12-month top seen of Friday to $1,330/1,335.
In any case, the jump seen in the final part of last week, could represent an important test to the key resistance level of $1,350-1,370, an area which has always stopped the recovery of bullion in the last 4 years, starting from summer 2016, just after the Brexit vote, when the yellow metal stopped its rally in this area (slightly above, at $1,374).
Moreover, there are many automatic orders in this area and many short sellers are likely to close their bearish betting if gold rises above $1,370. Investors are now focusing on the FOMC meeting of this week. They will be paying attention to any hints to potential rate cuts in the next few months.
