Cautious buying lifts Gold from $3,311 eyeing FOMC Minutes for $3,350?
- Gold plays strong on Buoyancy principles as dips to $3311 attracts buyers reclaiming 1 Hourly 100 SMA at $3336
- Markets remain broadly cautious ahead of upcoming FOMC meeting minutes for clues on Interest rate outlook.
- Dollar Index drops from Intraday high of 98.40 to 98.10 adding strength to Gold's bullish momentum.
- Russia-Ukraine crisis remains on edge despite Trump mediation.
What's going on with Gold?
Cautious markets prefer safe haven asset Gold than Dollar and early Asian session witnessed a consolidated buying off the lows of $3311.50 which triggered bullish rally that advanced surpassing cluster of resistances $3327-$3336 and reached $3344 aligned with 4 hourly 50 EMA.
If Gold maintains bullish momentum above $3343, next upside target sits at $3349 above which critical hurdle and turning point is swing high $3358 followed by $3364.
Meanwhile, some pullback retracement towards support base may not be ruled out on US session opening hours with a potential retest of $3336-$3330-$3325 zone where buyers may resurface for extended bullish rally that targets $3385.
On the flip side, break below $3320 followed by break below $3310 will resume selling pressure to target $3305-$3292.
Author
Sunil Kumar Dixit
SK Charting
Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.
