Spot Gold rallied on Monday, extending recovery from $1320 (22 Feb low), driven by fresh weakness of US dollar at the beginning of week.
Bullish acceleration improved near-term structure as metal’s price gains fresh bullish momentum and the price broke above a cluster of daily MA’s (10/20/30), laying between $1334 and S1338, hitting session high at $1341 (Fibo 50% of $1361/$1320 bear-leg).
Bullishly-aligned daily techs are supportive for further advance, as rising daily cloud continues to underpin, but traders are cautious ahead of tomorrow’s congressional testimony of Fed Chairman Powell, who could bring more light on central bank’s next steps regarding monetary policy, minutes of the last FOMC meeting, released last week, showed hawkish tone which could result in increasing pace of rate hikes this year.
Broken 20SMA marks solid support at $1334 which should contain dips and keep fresh bulls in play for extension towards pivots at $1346/48 (Fibo 61.8% of $1361/$1320 bear-leg / 20Feb high).
Conversely, loss of 20SMA handle would soften near-term tone and keep the downside vulnerable.
Res: 1341, 1346, 1348, 1351
Sup: 1336, 1334, 1330, 1326
, driven by fresh weakness of US dollar at the beginning of week. Bullish acceleration improved near-term structure as metal's price gains fresh bullish momentum and the price broke above a cluster of daily MA's (10/20/30), laying between $1334 and S1338, hitting session high at $1341 (Fibo 50% of $1361/$1320 bear-leg).){kind=link}