...but reaches a ceiling level
The price of gold is up for the 3rd day in a row. The precious metal fell to the lowest level going back to August on Friday, and moved further away from the 100 day MA (blue line in the chart below), but by the end of the day the price had moved back above that MA level. The sellers turned to buyers.
Drilling to the hourly chart below, the move off the low saw the price move back above both the 100 and 200 hour MAs (blue and green lines) on Friday (for the 100 hour MA) and on Monday (for the 200 hour MA). Today the pair moved further away from those MAs and approaches the 38.2% of the move down from the Sept 11 high at $1297.70.
What now?
Focusing back on the daily chart, the high today stalled at $1294.34 (the pair trades around $1288.80 currently). That high was within a $1.80 of the April 2017 swing high at $1295.56 and the June 2017 swing high at $1296.15. Getting above those levels and staying above might be more important technically than getting above the natural resistance at $1300.
So if the contract is to keep the corrective move going, look for a break of the $1294.34-$1296.15 area to be more of a bullish signal. If not, the move higher is just a little correction of the move down from the September $1357.61 high.
