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Technical Outlook: SPOT GOLD – Weaker Dollar Inflates Gold Price, Plethora Of Barriers Comes In Focus

Gold regains traction and pressures Thursday’s one-week high at $1259 after shallow correction was contained at $1250.

The dollar eased on Friday on fresh concerns over US tax reform, boosting gold’s price.

Recovery leg from $1236 (12 Dec low) looks for break of pivotal barrier at $1260 (Fibo 38.2% of $1299/$1236 descend), to generate stronger bullish signal for extension towards next strong barrier at $1267 (200SMA / 50% retracement).

Initial bullish signal that was generated on today’s break above falling 10SMA (currently at $1255) supports the notion.

However, overall bearish structure requires caution as recovery rally is seen limited before bears regain full control.

Failure to clear $1260 will be initial signal of early rejection while extended recovery leg should remain capped by $1267/70 barriers (converging 200/20 SMA’s) to keep bearish scenario intact. Conversely, sustained break higher would sideline bears for stronger correction of $1299/$1236 bear-leg.

Res: 1260, 1264, 1267, 1270
Sup: 1252, 1250, 1247, 1240

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