Bottom in place: Gold jumped to 10-day high
By Omkar Godbole- Gold (XAU/USD) jumped to 10-day high yesterday, adding credence to long-tailed candles.
- Eyes gradually ascending (bullish) 100-day moving average (MA) hurdle.
Having created back-to-back long-tailed doji candles at the 200-day moving average support, gold shot up to a ten-day high of $1,323 - the highest level since April 30.
The yellow metal picked up a bid yesterday as the dollar index (DXY), which tracks the value of the greenback against major currencies, fell from 92.97 to 92.40 after the US April consumer price index (CPI) missed estimates.
The price action indicates the sell-off from the April 11 high of $1,365 has made a temporary low of $1,300 (May 1 low) and the bulls have regained control.
Further, the DXY daily chart shows bearish doji reversal, so the yellow metal may extend gains further to the gradually ascending (100-day MA) of $1,327.
Gold Technical Levels
As of writing, the metal is changing hands at $1,320/Oz. Resistance is lined up at $1,327 (100-day MA), $1328.50 (50-day MA) and support is seen at $1,317 (5-day MA) and $1,314 (10-day MA).
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