Gold’s rebound from 1238.00 continues today and hits as high as 1265.40 so far. With a short term bottomed formed ahead of 1236.66 key support could be seen. Gold should now target 38.2% retracement of 1365.24 to 1238.00 at 1286.60. That would still be reasonably close to 55 day EMA (now at 1286.23) when they meet. For now we’re only seeing the rebound from 1238.00 as a corrective pattern. Hence, we’d expect strong resistance from 1286.60 to limit upside. The fall from 1365.24 is expected to resume later through 1238.00, when Dollar regains strength.
