Gold needs acceptance above $2.520-$2.527 for new up leg, markets wait for triggers
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Some recovery in Dollar Index caps gains in Gold.
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Gold takes a breather as momentum pauses after $2527, attracts sellers.
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Upcoming CB Consumer Confidence numbers likely to drive next move in Gold.
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Immediate support seen at $2499-$2496 followed by $2482.
After yesterday's bullish attempts failed to advance beyond $2527, sellers made up their mind to take some chance and buyers started collecting what's left on the table.
Another reason is smart money prefers buying the discounted area which comes on some price correction which in this case, is seen at possible decline around $2499-$2496 and a tad lower $2482
Here it is worth mention that if factors driving Gold bullish rally give out softening signals, correction may extend deeper towards $2464-$2442
On the flip side, consolidation above $2499-$2496 will be deemed as positive and a successful break above $2520-$2527 will resume prevailing bullish momentum that targets retesting swing high $2532 which may launch the second up leg initially beginning with $2543 followed by $2556
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.
