Gold Technical Analysis: Spikes to over 1-week tops to test a previous support break-point
|• The precious metal continued gaining positive traction for the second consecutive session on Thursday and spiked to over one-week highs, beyond $1280 level in the last hour.
• A modest intraday USD pull-back from near two year tops turned out to be one of the key factors underpinning the dollar-denominated commodity and fueling the recovery move.
• A sustained move above 200-hour SMA - for the first time in around two weeks, was seen as a key trigger for bullish traders and support prospects for additional intraday gains.
• Technical indicators on hourly charts have been gaining positive traction and further add credence to the constructive outlook, though bearish oscillators on the daily chart warrant caution.
• Hence, it would be prudent to wait for a sustained move back above the previous horizontal support break-point, now turned resistance before positioning for any further positive move.
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