Spot gold extends advance to new nearly nine-month high at $1309 on Tuesday, after Monday’s Doji candle signaled a pause after last Friday’s 1.7% rally (the biggest one-day gains since 11 Oct 2018).
The yellow metal benefits as traders remain cautious ahead of key events: Brexit vote in the UK, Fed’s policy decision, end of the latest US/China talks as well as release of earnings of big tech companies.
Bullish daily techs add to positive outlook, however, weaker momentum warns that bulls may struggle to extend further. Bulls eye targets at $1309 (14 Jun high) and $1311 (Fibo 161.8% projection of the rally from $1276), violation of which would expose pivotal barrier at $1316 (Fibo 76.4% of $1365/$1160).
Former high at $1298 (4 Jan) marks initial support, with more significant support provided parallel-running converged 10/20SMA’s (1290/89) expected to contain deeper corrective actions.
Res: 1309, 1311, 1316, 1325
Sup: 1302, 1298, 1295, 1290
