FX.co ★ Gold intraday technical levels and trading recommendations for July 31, 2013

Supply Levels: 1,340.20, 1,370.40, and 1,423.30.

Demand Levels: 1,312.20, 1,256.00, and 1,209.

Bullish breakout above previous congestion zone extending between 1,265-1,298 took place on Monday. This enhances the ongoing uptrend.

Lack of bullish steam is apparent on the chart after hiting 1,347.8, successive daily inside bars are trapped within Friday's pin-bar price range.

The current situation supports a correction movement towards 1,299 provided that the metal could breakdown the low of Friday at 1,312.00.

A valid bullish position can be taken at retesting of 1,285 with SL located below 1,260.