Gold surged to as high as 1212.64 earlier today. It rode on Dollar’s weakness on optimism that US and China is back on the negotiation table. However, Gold failed to take out 1214.30 resistance and was then knocked down as Trump tried to re-escalate trade tension with his tweet.
So, for now, it’s technically staying in consolidation pattern from 1214.30. More sideway trading could be seen. For now, as long as 1187.58 support holds, further rally is expected. Break of 1214.30 will eventually resume the rebound from 1160.36 medium term bottom towards 38.2% retracement of 1365.24 to 1160.36 at 1238.62. We’d expect strong resistance from there to limit upside.
On the downside, break of 1187.58 will suggests that the rebound is completed and bring retest of 1160.36 low.
