Gold: bulls have eyes set on $1,248 target

• Spot gold is making higher lows even when the dollar is strong, picking up the safe haven flows following the latest drop in global equities. 
• Spot gold is currently trading at 1235 and pressuring the 10 and 21-hr SMAs supported by the 21-D SMA.

Gold has been solid even amid U.S. dollar strength acting as a hedge and safe-haven while investors seek an alternative to stocks and riskier investments. On Friday, the precious metal rallied from 1231 and reached a fresh short-term high at 1243 with the symmetrical triangle trade laying out in a grind higher.

The yellow metal lost its shine, however, on the back of the US data Friday that showed third-quarter gross domestic product grew at a 3.5% annualized pace and beat expectations. However, analysts at Nomura noted that unintended inventory buildup likely raised growth and growth will likely slow over the coming quarters.

• US GDP Beats Forecast but Markets Unimpressed

Stocks in midst of one of their biggest selloffs in years

Stocks had another bad day again on Friday. The Wall Street Journal reported that it was a powerful slump in technology and internet stocks that is putting the S&P 500 in danger of joining the Nasdaq Composite in correction territory as investors continued an October retreat from risky assets.

"U.S. stocks are in the midst of one of their biggest selloffs in years, sparked by worries about the impact of tariffs on U.S. company earnings, as well as whether a slowdown in China and Europe growth could spill over into the U.S. economy. Fast-growing internet and tech firms have been some of the hardest hit stocks during the market turmoil of the past few weeks, with the tech-heavy Nasdaq Composite on track for its worst month since 2008."

Gold levels

The yellow metal is climbing its way higher and holds above the key 21-D SMA. Daily RSI and MACD and price is en route to the $1,248 target that comes with the confluence of the 7th Aug lows 2018 and Oct 2016 reversal lows.To the downside, bears can target $1,198 taking the price to a few dollars short of the 50% retracement Fibo of 15th Aug lows to 15th Oct highs.