SPOT GOLD – fresh bullish extension on weaker dollar; US data eyed

Slobodan Drvenica Windsor Brokers

GOLD

Bulls accelerated on Friday to new 4-month high on broadly weaker dollar, signaling continuation of larger uptrend from $1236 (12 Dec low).
Fresh bullish acceleration took out barrier at $1328 (Fibo 76.4% of $1357/$1236), eyeing barriers at $1334 (13/15 Sep highs) and $1340 (11 Sep high) which marks the last obstacle on the way towards key barrier at $1357 (08 Sep peak, the highest since mid-2016).
Bullish techs and sentiment underpin the advance, with the yellow metal being on track for the fifth straight bullish weekly close.
Fresh direction signals are expected from US CPI / retail sales data today.
However, corrective action cannot be ruled out on overbought daily RSI and profit-taking at the end of the week.
Rising 10SMA tracks the advance since mid-Dec and marks support at $1317, which should ideally hold dips and guard key near-term support at $1308 (10 Jan correction low).

Res: 1332; 1334; 1340; 1357
Sup: 1327; 1321; 1317; 1308

Interested in XAYYSD technicals? Check out the key levels

1. R3 1334.72
2. R2 1329.33
3. R1 1325.87
PP 1320.48
1. S1 1317.02
2. S2 1311.63
3. S3 1308.17

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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