Gold clocked 1270.50 May-2017-fresh-highs but failed to march forward, hitting a strong resistance with successful test, retreating to 1261.71 low. Technically, gold remains bullish as the yellow metal remains above its 10-EMA at 1257 and 50-EMA at 1249 which keeps gold's bullish forces in action. Currently gold is trading 1263 intraday, and in case the market closed below 1265, expectations for retracements back to 1257 level. with a reminder of recent behavior, and breaking above 1270 will be postponed for another daily session.
On the other hand, if gold managed to close above 1265, market will re-test 1270 level and in case of penetration, next station will be 1277.
Fundamentals:
1- USD - Core PCE Price Index m/m today at 12:30 PM GMT.
2- USD - Personal Spending m/m today at 12:30 PM GMT.
3- USD - CB Consumer Confidence today at 2:00 PM GMT.
Trend: Sideways / Bullish
Resistance levels: R1 1265, R2 1270, R3 1277
Support levels: S1 1261, S2 1257, S3 1250
Comment: overall, gold remains bullish as explained above. Dips should fight S1&S2. In case gold closes above R2 level, expectations for further attacks seeing R2&R3 as a target. R2 to be considered strongest resistance as a reminder of today's setbacks. U.S data is the key player today. Closing below 1249 indicates that market has shifted bearish with intensive selloffs seeing 1245+ destination.
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