Spot gold reached new high at $1292 on Thursday (the highest since 10 June 2018), in extension of steep ascend, driven by increased safe-haven demand on fears of global growth slowdown and high market volatility.
The yellow metal rose over 2.5% in the first two trading days of the new year, with today’s extension through key barrier at $1286 (Fibo 61.8% of $1365/$1160) and penetration of narrowing weekly cloud (1285/1291), generating bullish signals
Weaker dollar despite much stronger than expected rise in US private employment (ADP report showed increase of 271K in Dec vs 179K f/c) and firmly bullish daily techs, add to gold’s strength.
Bulls look for fresh signal on close above $1286 Fibo barrier to open way for test of psychological $1300 level and possible extension towards $1309/16 (14 Jun 2018 lower high / Fibo 76.4%) on stronger bullish acceleration.
Rising 5SMA offers initial support at $1281 and guards ascending 10SMA pivot ($1270) which is expected to contain dips on overbought daily studies.
Res: 1292; 1300; 1309; 1316
Sup: 1284; 1281; 1274; 1270
