The Technical Outlook for Gold Bullion
Spot Gold moves higher Monday closing at 1,284.32 oz, as risk aversion helped the commodity to resume its Bullish trend from earlier this year.
Risk aversion, prompted by China and the UK, underpinned the precious Yellow metal, alongside with the Uturn in market’s hopes of a US Summer rate hike.
These coming days are Key for Gold, as if the US Fed refrains from acting, Gold can extend beyond this year’s high in the 1,303.00 region, with market talks now pointing for a test of 1,500.00.
The precious Yellow metal is now above the 61.8% Fibo retracement of its latest daily decline, at 1,263.80, and technical readings in the daily favor further advances, as the indicators continue heading North within positive territory, the price has moved well above the 20 and 100-Day MA’s.
In the 4 hours, the 20-Day SMA maintains a strong upward slope, and after crossing the 100 and 200-Day SMAs, supporting a Bullish continuation, although the technical indicators have lost some upward strength, indicating the possibility of a limited Southward corrective move ahead of a new leg higher. We did not see that Monday.
Support marks: 1,263.80 1,256.65 1,244.40
Resistance marks: 1,296.65 1,303.65