Gold’s rally accelerated after clearing 2531 resistance earlier in the week, and was further aided by the broad-based selloff in Dollar overnight. With price now nearing a critical resistance zone just below 2600 mark, focused is on whether Gold can sustain this momentum. Decisive break above this level could lead to upside acceleration, and extend the record run towards 2750 region.
Technically, near term outlook will stay bullish as long as 2531.52 resistance turned support holds. Next target is 61.8% projection of 2364.18 to 2531.52 from 2471.76 at 2575.17. Decisive break there will target 100% projection at 2639.10.
From a medium term perspective, outlook is staying bullish with continuous strong support from rising 55 D EMA. Key focus is on 61.8% projection of 1984.05 to 2449.83 from 2293.45 at 2581.30, which is close to above mentioned 2575.17 projection level. Sustained break of this cluster projections level could prompt further upside acceleration to 100% projection at 2742.51.
