Spot Gold remains steady on Thursday and is consolidating under fresh three-week high at $1251, posted on Wednesday.
The yellow metal maintains strong bullish sentiment on recent risk-off mode and increased demand for safe-haven assets, being in steep ascend for six consecutive days.
Today’s events, vote for US healthcare plan and speech of Fed Chair Yellen, could generate stronger signals.
Technical studies remain in strong bullish setup, however, overbought slow stochastic on daily chart and bearish divergence of 4-hr chart slow stochastic, may signal that strong rally from $1195 trough is running out of steam.
Top of thickening hourly chart that underpins near-term action, currently lies at $1243 (also Wednesday’s low) and needs to hold dips to keep bulls in play for renewed attempt higher.
Sustained break above $1251 barrier is needed to open targets at $1260/63 (200SMA / 27 Feb high).
Otherwise, penetration into hourly cloud would risk weakness towards next pivot at $1237 (hourly cloud base / broken Fibo 61.8% of $1263/$1195 downleg).
Res: 1251; 1258; 1260; 1263
Sup: 1243; 1237; 1229; 1226
