Spot Gold holds within narrow consolidation below new recovery high at $1306 on Friday and maintains firm tone following previous day’s nearly 1% rally.
The yellow metal rose on fresh safe-haven demand on uncertainty over US – North Korea talks and weaker dollar.
Rally was so far capped by 200SMA $1307) and could extend recovery from the base at $1285 zone.
Firm break above 200SMA would expose next pivots at $1314 (Fibo 38.2% of $1365/$1282 descend/falling 30SMA), with strengthening momentum supporting the notion.
On the other side, overbought slow stochastic signals that gold may enter extended consolidation on repeated failure at 200SMA, but needs to hold above psychological $1300 support to maintain bullish bias.
Initial negative signal could be expected on break below $1300 while extension and close below falling 10SMA ($1296) would signal. Lower top and risk of further weakness.
Res: 1307, 1309, 1314, 1322
Sup: 1300, 1296, 1292, 1287
