Here’s what gold bulls need to see

Simon Critchley | Ikon Images | Getty Images

With four-straight winning sessions, gold appears to be turning around. But keep watching the chart closely, because bullion isn't in the clear yet.

Gold finished on the high side of its range on Friday, allowing the market to carry slight momentum into the new week. After closing at $1,312 on Friday, gold has been up more than $20 at one point in Monday's session, reaching a high of $1,333 as it stretched above major resistance at $1,325.

(Read more: Gold climbs for 4th day, SPDR holdings rise)

Gold settled back down to hug the $1,325 level, as the metal looks for support in order to consolidate and likely retest the session highs. A close above this level will be important to keep Monday's momentum. And the market needs to close above $1,317.50 to $1,318 just to avoid a failure.

(Read more: The new warning sign for gold)

The next major upside target this week is $1,340.90, where the market has recently failed. A close above here will likely signal a bullish breakout.

—Rich Ilczyszyn is founder and CEO of iiTrader. Follow him on Twitter @iiTrader.

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