Spot Gold spiked to new 11-month high at $1339 on Monday, in reaction on North Korea’s nuclear probe over the weekend.
Renewed uncertainty on rising geopolitical tension prompted investors to exit riskier assets and jump into safe haven instruments.
Gold opened with $9 gap higher on Monday, breaking above the upper boundary of short-term bull-channel and extended the wave C, on which the price is riding, through its FE 123.6% at $1337 (also spike high of 09 Nov 2016). The wave may extend towards $1347 (FE 138.2%) as strong safe-haven demand keeps the yellow metal well supported.
Overbought conditions of daily studies have so far been ignored but some corrective action could be anticipated in coming sessions.
Res: 139, 1343, 1347, 1352
Sup: 1331, 1329, 1325, 1316
