Spot Gold broke into daily cloud and may extend rally to Fibo 61.8% barrier at $1261
|GOLD
Spot Gold remains firm on Monday and extends gains to fresh one-month high at $1257, just tick ahead of $1258 target (23 June high), after bulls penetrated daily cloud (cloud base lies at $1255).
Rally may extend towards $1261 (Fibo 61.8% of $1296/$1204 descend) which marks next target and strong barrier.
Gold price has been in steep bull-channel from $1204 low in past two weeks, with consolidative / corrective action anticipated in the near-term on strongly overbought slow stochastic on daily chart.
Lack of firmer bearish signal keeps bulls in play for now.
Session low at $1251 marks initial support, with converged 55/100SMA’s in attempt to form bull-cross at $1247 reinforced by weekly cloud top), offering solid support, which is expected to contain extended dips.
Res: 1258; 1261; 1265; 1270
Sup: 1255; 1251; 1247; 1243
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