SPOT GOLD – eventual break into daily cloud signals further upside
Spot Gold price maintains firm tone on Tuesday and holding near fresh high at $1299 (the highest since mid-October).
The yellow metal’s price eventually broke into thickening daily cloud (spanned between $1289 and $1309) after cloud base repeatedly capped upside attempts last week.
Sentiment remains positive for further advance as concerns over the pace of rate hikes and US tax overhaul continues to weigh on the greenback.
Bullish setup of daily techs also supports, with today’s formation of 10/55SMA bull-cross, additionally supporting.
Bulls eye cracked pivot at $1297 (Fibo 38.2% of $1357/$1260 descend) and psychological $1300 barrier, break of which would open way towards next key point at $1309 (daily cloud top).
Broken cloud base ($1289) marks key support and is expected to limit downside attempts.
Res: 1297; 1300; 1306; 1309
Sup: 1292; 1289; 1286; 1282