Spot Gold heads towards target at $1250

Slobodan Drvenica Windsor Brokers

GOLD

Spot Gold extended gains on Friday and dented barriers at $1246/47 (converged 55/10SMA’s) en-route towards targets at $1250 (50% retracement of $1296/$1296 descend) and $1255 ( daily cloud base) in extension.

The yellow metal regained traction on Thursday after fresh weakness of dollar boosted gold price and left higher base at $1235 (Wed/Thu consolidation lows).

Strong bullish structure was reinforced by 10/200SMA golden cross, formed on daily chart, with gold price being on track for the second strong weekly bullish close, signaling firm bullish stance.

Strongly overbought slow stochastic on daily chart warns of rally’s stall and corrective action in the near-term.

Session low at $1243 offers initial support, followed by broken Fibo 38.2% barrier at $1239, which is expected to hold and guard $1235 higher base.

Res: 1250; 1255; 1258; 1261
Sup: 1243; 1239; 1235; 1230

Interested in Gold technicals? Check out the key levels

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.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.