Spot Gold is holding positive tone on Friday, following Thursday’s bullish close and regained former strong support now reverted to resistance at $1229 (broken Fibo 38.2% of $1122/$1295 ascend).
The yellow metal was boosted by political turmoil in the US that pressured the dollar and increased demand for safe haven gold.
Additional support was provided by daily slow stochastic and RSI which reversed from oversold territory and show room for further upside on break above $1229 pivot.
However, recovery may be limited as overall structure is bearish and a cluster of resistances en-route is expected to cap rallies.
Falling 10SMA offers immediate resistance at $1232, followed by south-heading daily Tenkan-sen (currently at $1236) and daily cloud top at $1239 which is expected to cap extended upticks.
Gold is awaiting release of US data today for fresh signals. Better than expected US CPI and Retail Sales numbers would boost the dollar and push gold towards its near-term target at $1210.
On the other side, downbeat results would risk bullish acceleration above daily cloud top which would generated stronger signal for extended correction and expose next pivot at $1245 (Fibo 38.2% of $1295/$1214 fall).
Res: 1229, 1232, 1236, 1239
Sup: 1225, 1216, 1214, 1210
