Gold’s correction from 1214.30 extended to 1189.49 earlier this week but recovered since then. It’s picking up some upside momentum today and is back above 1200. But for now we’d prefer to see a break of 1209.00 minor resistance to confirm near term bullishness.
Overall outlook is unchanged. With 1182.90 minor support intact, rebound from 1160.36 is still in progress and further rise is expected. Break of 1209 will suggest rise resumption for 55 day EMA (now at 1222.51) and above.
However, as this rebound is seen as a correction to the larger down trend from 1365.24, we’d expect strong resistance from 38.2% retracement of 1365.24 to 1160.36 at 1238.62 to limit upside to complete it.
