Gold’s firm break of 1721.90 resistance yesterday suggests that corrective fall from 1765.25 has completed with three waves down to 1670.66. That came after drawing support from 55 day EMA. Further rise is now in favor as long as 1707.84 minor support holds.
Decisive break of 1765.25 high will resume larger up trend. Next near term target will be 61.8% projection of 1451.16 to 1765.25 from 1670.66 at 1864.76. If that happens, the question is whether gold and Dollar with strengthen together on come back of risk aversion. Or, it would be riding on extended selloff in the greenback. This is something to be watched.
