Spot gold maintains firm tone and extends advance into second straight day. Fresh upside was boosted by weaker dollar on fading US/China trade conflict fears, as well as dovish tones from Fed, which signal that widely expected rate hike in December, might be postponed.
The metal rose 1.3% since Monday’s opening, taking out significant barriers at $1232 (Fibo 76.4% of $1243/$1196) and lower platform at $1237 zone (also Fibo 38.2% of $1365/$1160 downtrend).
Bulls eye key barrier at $1243 (26 Oct high) break of which would signal continuation of larger recovery from $1160 (2018 low, posted on 16 Aug) and expose pivotal barrier at $1252 (50% of $1309/$1160 bear leg).
Bullish techs support scenario, however, bulls may show hesitation on approach to $1243 barrier as slow stochastic is entering overbought territory and 14-d momentum turned sideways.
Dips could be seen as positioning for fresh upside and should ideally find ground above broken $1232/30 barriers, now reverted to supports.
Res: 1241, 1243, 1248, 1252
Sup: 1237, 1232, 1230, 1225
