Gold resumes bullish rebound, targets descending channel resistance $3,380
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Dollar weakness supports Gold Upmove.
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Immediate hurdle $3250.
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Next Challenge 4 Hourly 100 SMA $3280.
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Major Resistance descending channel trendline $3380.
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Support Zone $3215-$3200 & $3190.
Gold continues to attract buyers on dips as the weakness in the greenback keeps safe haven demand for the yellow metal intact.
As bulls successfully reclaimed the psychological mark $3200 and established support at local demand zone $3215, the metal witnesses further attempts at 4 hourly 50 EMA $3242 above which immediate hurdle sits at $3250.
If Gold finds enough buying momentum and clears through $3250, we expect next upsde reaching mid range $3265 above which further extension comes for $3280
A strong push followed by a Daily close above this $3280 will ease the way to major resistance at descending channel resistance $3380
All this while, any retracement towards local demand area $3230-$3215 will be closely monitored by bulls as break below this zone will extend decline to $3200 below which next support sits at $3190
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.
