Spot gold spiked to three-month high at $1344 on Wednesday, extending strong rally from last Thursday’s low at $1275 and approaching key short-term barrier at $1346 (2019 high, posted on 20 Feb).
Fresh advance is on track to fully retrace multi-month $1346/$1266 pullback and resume larger uptrend from 2018 low at $1160 (16 Aug).
The yellow metal’s price accelerated higher last week on signs of spreading trade war that prompted investors from riskier assets into safe-haven, with dovish comments from top Fed officials, signaling that the Fed may start cut interest rates on growing concerns about global growth slowdown.
Bulls show hesitation ahead of key $1346 barrier, as bulls started to run out of steam on strongly overbought studies.
Price adjustment may precede final attempt through $1346 pivot, with $1327 (broken Fibo 76.4% of $1346/$1266) and former high of 25 Mar ($1324) marking solid supports which should ideally contain dips and guard pivotal supports at $1316 (broken Fibo 61.8%) and $1315 (rising 5SMA).
Res: 1344; 1346; 1355; 1365
Sup: 1327; 1324; 1315; 1310
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