Gold drops to $3,245 and bounces to $3,290: Bulls must reclaim $3,305 or bears gain control
- Dollar Index gains strength reaching 100.50.
- Gold faces headwinds amidst decline to $3,245.
- Rebound faces hurdle at $3,298-$3,305.
- Below $3,245, next Support $3,228-$3,215.
As the Dollar Index begins to bounce off the lows, Gold comes under selling pressure diving to $3245 during early Asian session quickly followed by recovery attempts to approach $3290, a little distance away from thresholds of immediate support turned resistance zone $3298-$3305.
Four-hourly 100 SMA $3281 holds as immediate support of rebound rally while 4-hour 200 SMA and 50 EMA $3298 pose challenge above which next overhead resistance sits at $3305
If bulls fail to clear through these critical resistance areas, odds favour return of bearish retracement to $3266 below which retest of $3245 may be witnessed.
If sellers continue to overpower, break below $3245 calls for further drop to $3,228 followed by next support zone $3,215
Gold bulls need to reclaim critical resistance $3298-$3305 as well as clear through $3315-$3325 in order to turn the short term trend bullish again for further rally.
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.
