The hardest obstacle facing gold bullish with extension is today's high resistance located at 1263.80 and 1265. A resistance door which gold has knocked several times in the past two months with failure to penetrate and technically retreating, but fundamentals were always there for the help including safe haven and negative U.S Data interventions. But technical intakes with gold closing above daily 100 and 200 SMA at 1238 indicates that gold current trend is bullish supported by strong rising trend line, the yellow metal should overcome the 1265 with no hard time. Closing Above 1265, traders should prepare for themselves seeing gold on a jet ride with further inclines seeing 1280+ as a destination.
Add to that, recent events including North Korea events and yesterday's attack on UK should contribute to gold bullish forces as safe haven substitute. Gold is currently trading 1260 and US dollar continues to show weakness as the Index dipped today to 96.69 low, currently at 96.85 intraday.
Fundamentally, US will release New Home Sales report with minor with doubts that gold bullish momentum will be tackled taking into consideration recent US inside political tension and US dollar needs some major event to save the Index from nursery. FOMC member Kashkari will cross wires today twice but recent appearances shows a neutral stance regarding Fed hikes which also should not trip gold rising trend.
Fundamentals:
1- USD - New Home Sales Report with low impact today at 2:00 PM GMT.
2- USD - FOMC memeber Kashkari due to speak twice today afternoon GMT.
Technical Overview:
Trend: Bullish / Sideways
Resistance levels: R1 1265, R2 1238.38, R3 1271 (H1)
Support levels: S1 1257.28, S2 1254.39, S3 1250.82
Summary: The market holds a friendly alignment and calls for another push to challenge against the 1265.60* resistance level. A close over 1265.60* projects rallies into the 1280-1290 zone. Be careful for a back off from 1265.60* and slip to additional sideways trade around 1260-1250. Closing above 1248 keeps gold bullish forces in action and resistance 1265 could be postponed for other daily session. Expect setbacks from 1265. A close under 1248.50* is needed to secure a short term turnover and project retracements to 1234.50.
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