Gold retraces from $4,500, bulls in control above $4,350
|- Gold started the early Asian session with strong bullish momentum reaching psychological zone $4500
- Initial consolidation failed to break the barrier and dropped to Fibonacci zone $4444 and tapped into 1 Hour 200 SMA $4428
- Short time frame structure is lacking bullish conviction, calls for temporary correctional retracement towards $4410-$4380
- Bulls need to reclaim overhead resistance $4480 to resume upward advance clearing through $4500 for next leg $4550
Fundamental drivers
Geo political tensions are causing global economic uncertainty as US attack on Venezuela has sparked safe haven demand resulting in Gold rush.
Global central banks are working on reducing dollar dependence and increasing Gold holdings in the reserves.
Dollar Index shows weak attempts to gain acceptance above 98.80 resulting in odds against recovery.
Technical drivers
1 Hour RSI reading of 42 indicates hesitation to resume bullish advance with chances of a lower retracement.
Price stability below 1 Hourly 50 EMA $4452 keeps momentum under pressure and sellers in control.
Overhead resistance $4475-$4480 restricts potential for bullish rebound.
A support zone sits at $4410 which coincides with 1 Hourly 100 SMA below which next potential downside retracement may reach Fibonacci zone $4380
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