Gold spikes to as high as 1611.37 after Iran launched a missile attack on US led forces in Iraq. The US military confirmed that a dozen ballistic missiles were fired from Iran against at least two Iraqi facilities. Iran’s state TV also said the Revolutionary Guards Corps confirmed they fired the missiles to retaliate for last week’s killing of Qassem Soleimani . Iran also warned US allies including Israel not to allow more attacks from their territories.
Gold’s uptrend is on track to 61.8% projection of 1266.26 to 1557.04 from 1445.59 at 1625.29. At this point, we’d still expect upside to be limited there on overbought condition. Also, rise from 1445.59 is seen as the fifth leg of the five-wave sequence from 1160.17. Medium term correction should be seen after topping. Break of 1555.30 support should indicate topping. However, sustained break of 1625.29 will pave the way to 100% projection at 1736.37.
