FX.co ★ Gold intraday technical levels and trading recommendations for August 2, 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, untill Wednesday when the metal expressed a failing attempt to step below Friday's low making a pin-bar at the end of the day.

The current situation supports a correction movement towards 1,299 provided that the metal could break down the low of Friday at 1,312.00 which all took place today.

A valid bullish position can be taken at retesting of 1,285 with SL located below 1,260, our position was triggered few hours ago and running in profits now.