Gold drops to $3,245 and bounces to $3,290: Bulls must reclaim $3,305 or bears gain control
|- Dollar Index gains strength reaching 100.50.
- Gold faces headwinds amidst decline to $3,245.
- Rebound faces hurdle at $3,298-$3,305.
- Below $3,245, next Support $3,228-$3,215.
As the Dollar Index begins to bounce off the lows, Gold comes under selling pressure diving to $3245 during early Asian session quickly followed by recovery attempts to approach $3290, a little distance away from thresholds of immediate support turned resistance zone $3298-$3305.
Four-hourly 100 SMA $3281 holds as immediate support of rebound rally while 4-hour 200 SMA and 50 EMA $3298 pose challenge above which next overhead resistance sits at $3305
If bulls fail to clear through these critical resistance areas, odds favour return of bearish retracement to $3266 below which retest of $3245 may be witnessed.
If sellers continue to overpower, break below $3245 calls for further drop to $3,228 followed by next support zone $3,215
Gold bulls need to reclaim critical resistance $3298-$3305 as well as clear through $3315-$3325 in order to turn the short term trend bullish again for further rally.
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