Spot Gold surged after disappointing US inflation data and cracked psychological $1300, posting new high at $1302, the highest since 26 Sep. The metal extended its steep ascend from $1260 into sixth straight day, retracing over 76.4% of $1313/$1260 downleg. Gold advanced on weaker dollar last week, with another sign of weak US inflation, which reduces hopes of rate hike in December and boosts US interest rate-change sensitive gold. Spot Gold is on track for strong weekly close (the first bullish week after being in red for one month) and reversal pattern is forming on weekly chart, which would further boost metal’s price. Close above $1297 (Fibo 38.2% of $1357/$1260 descend) will generate bullish signal for further advance which now eyes strong barrier at $1309 (daily cloud top/Kijun-sen line), break of which will be another strong bullish signal. Meanwhile, the rally may take a breather, which is indicated by overbought slow stochastic on daily chart, but so far without firmer signal. Broken 55SMA offers solid support at $1295 which should contain dips, guarding 20SMA pivot at $1288.
Res: 1302; 1309; 1313; 1316
Sup: 1297; 1295; 1288; 1281
