SPOT GOLD hits new recovery high in extension of strong rally on Wednesday
Spot Gold hit new nearly three-week high at $1357 on Thursday, in extension of strong rally previous day when gold price advanced over 1.5%.
Significantly weaker dollar which returned to broader downtrend after being initially boosted by upbeat US CPI data, boosted the yellow metal’s price which is now on track to fully retrace $1366/$1307 corrective phase.
Wednesday’s strong bullish acceleration brought daily techs back to full bullish setup which are expected to support price for final push towards $1366 target (25 Jan high, the highest since July 2016).
However, overbought conditions warn that bulls may lose traction ahead of $1366 target and enter consolidative phase before continuing.
Broken Fibo 61.8% barrier marks solid support at $1343, guarding 20SMA ($1336).
Res: 1357; 1362; 1366; 1375
Sup: 1349; 1343; 1336; 1333