Spot Gold rose to six-week high at $1282 on Monday, extending strong rally from last Friday, when gold price was boosted by weaker dollar on disappointing US jobs data.
Terrorist attack in London over the weekend and rising geopolitical tensions in the Middle East, increased safe haven demand and further inflated gold price.
Friday’s long bullish daily candle (the biggest one-day rally since 17 May) continue to underpin the action, after gold closed above $1276 pivot (Fibo 76.4% of $1295/$1214) on Friday and break above bull-trendline resistance signaled bullish continuation.
Fresh bulls may extend towards $1288 (21 Apr high), with key barrier at $1295 (17 Apr peak) expected to come in focus.
Initial supports lay at $1278 (session low) and $1276 (broken Fibo 76.4%) with broken daily cloud top ($1270) expected to contain extended corrective downticks.
Res: 1282, 1288, 1295, 1300
Sup: 1278, 1276, 1270, 1265
