Spot gold surged to one week high at the beginning of American session on Friday as US stocks rose on upbeat earnings reports, sending the greenback lower across the board.
The yellow metal accelerated higher and emerged from four-day $1286/76 congestion, shifting near-term focus higher and signaling that broader bulls remain intact after corrective pullback from $1298 high based at $1276, contained by rising 30SMA.
Fresh advance so far retraced over 61.8% of $1298/$1276 pullback and also generated bullish signal on break above converged 10/20SMA’s, close above which would confirm bullish stance.
The high of 2019 at $1298 (posted on 4 Jan) is coming in focus as bulls regained traction after corrective phase and look for renewed attack at psychological $1300 barrier. Initial bullish signal would be generated on eventual weekly close above cracked Fibo barrier at $1286 (61.8% of $1365/$1160), with extension and close above $1300 needed to signal bullish continuation.
Broken converged 10/20SMA’s mark initial support at $1286, guarding lower pivot at $1276, loss of which would be bearish.
Res: 1295; 1298; 1300; 1306
Sup: 1286; 1279; 1276; 1273