Slobodan Drvenica
Windsor Brokers
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
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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