Spot gold dipped to as low as 1238.00 today but drew support from 1236.66 key support and recovered. Indeed, considering bullish convergence condition in 4 hour MACD, gold could be trying to form a short term bottom ahead of 1236.66. Focus is immediately back to 1255.60 minor resistance, break will confirm this and bring stronger rebound.
Nonetheless, we’re not expecting the medium term fall from 1365.24 to end that quickly. With or without an interim near term consolidation, fall from 1365.25 is expected to continue. Firm break of 1236.66 will pave the way to 1122.81.
