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Gold: Traders are awaiting key Global PMI data

As Gold completed $100 correction from new all time high recorded at $2482 followed by decline to $2384, the pullback from $2384 attracted some buyers and witnessed a retracement move that seems to have taken a temporary pause at $2419 as traders are awaiting key global PMI data that is believed to play significant role in showing path to further price action.

Meanwhile, immediate support is seen located at $2404 - $2395 which has been acting as local demand zone while immediate resistance is seen positioned at $2430 followed closely by $2435 which is likely to act as turning point for resumption of downside as bears may consider repositioning their shorts at better risk reward in anticipation of 200 SMA on 4 hour time frame that aligns with $2360 once swing low of $2384 is breached.

Considering the strong selling pressure witnessed after new record high, bulls seem to be cautious and may prefer to wait for the dust to settle and pevailing embalance to come to parity which is often witnessed on reacing value zone.

On the broader perspective, the risk remains tilted to downside for $2360 initially, as long as overhead resistance $2430-$2435 is in place.

On the flip side, strong break followed by day close above $2435 may be an indication of bulls taking control and resumption of bullish advance towards $2468 may be witnessed.

Author

Sunil Kumar Dixit

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.

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