Spot Gold moved higher on Wednesday after repeated rejection at $1282 support (Tuesday’s low) and moved above rising daily Tenkan-sen ($1284) which contained dip to $1280 on Monday and being dented on Tuesday but the price closed above it, generating positive signal.
Near-term recovery may extend further while the price stays above Tenkan-sen support, however, downside is expected to remain at risk while key barrier at $1292 (Mon/Tue upside rejection) stays intact.
The notion is supported by daily RSI / MACD bearish divergence and loss of $1282 handle may risk extension of pullback from $1300 peak towards $1277/75 (bull-channel support line / rising 20SMA) with extension to $1267 (15/16 Aug higher base) seen on further bearish acceleration.
Sustained break above $1292 pivot is needed to signal higher low at $1280 and re-focus $1300 barrier.
Bullish technicals favor further upside, with consolidation phase expected to precede fresh upside.
Traders are awaiting comments from Fed chief Yellen in Jackson Hole meeting, regarding monetary policy and interest rate outlook, which would generate stronger direction signal.
Res: 1287, 1289, 1292, 1296
Sup: 1284, 1282, 1280, 1277
