HomeContributorsTechnical AnalysisTechnical Outlook: Spot Gold remains congested between $1245 and $1265, FOMC minutes...

Technical Outlook: Spot Gold remains congested between $1245 and $1265, FOMC minutes in focus

Spot Gold is holding within $1245/$1265 congestion for the fifth day. Repeated upside rejection under $1265 and strong bearish close on Tuesday, turned near-term focus lower and signal possible retest of strong $1245 support. Support is provided by daily cloud base and Fibo 38.2% of $1214/$1265 upleg, reinforced by 200SMA and rising 10SMA which is attempting to form Golden Cross on break higher. In addition, 55SMA at $1247 and 20SMA at $1242, reinforce support zone, which marks the lower breakpoint. Bullish near-term bias could be expected while $1245 holds, however, lift above daily cloud ($1257) is seen as minimum requirement for extension and retest of $1265 pivot (double upside rejection / Fibo 61.8% of $1295/$1214 descend) break of which is needed to confirm bullish continuation. Alternatively, strong bearish signal could be expected on firm break below $1245 which would trigger extension towards $1233 (Fibo 61.8% of $1214/$1265). Gold may stay within narrow range ahead of FOMC minutes due later today, which may give stronger direction signals, depending on Fed’s tone about next rate hike.

Res: 1253, 1257, 1263, 1265
Sup: 1247, 1245, 1242, 1239

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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