Gold extends recovery, boosted by fresh concerns over global growth slowdown
Spot gold extends recovery through $1520 barrier (50% retracement of $1557/$1483) on Monday and tested 12 Sep spike high at $1524.
Fresh advance confirms higher base at $1484 zone and confirms bullish signal generated on Friday’s close above Figo 38.2% ($1511) and bullish long-tailed weekly candle, which emerged after three straight weeks in red and signals reversal.
Downbeat EU data on Monday added to concerns about global growth slowdown that added to risk aversion mode and boosted safe-haven gold.
Rising daily cloud continues to underpin recovery for extension towards next pivotal barrier at $1528 (Fibo 61.8% of $1557/$1483), break of which would further boost recovery.
Weakening momentum and overbought stochastic on daily chart require caution, but bulls so far do not show any sign of stall.
Corrective dips above converged 20/30DMA’s ($1514/13) would provide better opportunities to re-join bullish market.
Only return and close below broken Fibo barrier ($1511) and bull-trendline ($1508) would neutralize bulls.
Res: 1528; 1533; 1539; 1550
Sup: 1520; 1514; 1511; 1508