Gold resumes recovery, double-bottom underpins

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold rose to the highest in more than one week on Tuesday, resuming recovery leg from $1677 (Mar 31 low) after bulls took a breather on Monday.
Fresh weakness of the dollar and US Treasury yields revived metal’s appeal and lift the price.
Bulls cracked initial Fibo barrier at $1723 (23.6% of $1959/$1676) and eye pivotal barrier at $1755 (Mar 18 high) break of which is required to generate stronger reversal signal on completion of a double-bottom on daily chart.
Momentum indicator on daily chart broke into positive territory and support the action, but recovery could lose traction if bulls fail to clear $1755 pivot that would keep near-term action in the extended range.

Res: 1745; 1755; 1760; 1775
Sup: 1730; 1722; 1718; 1705

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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