SPOT GOLD – near-term bias remains bullish despite strong upside rejection
Spot Gold remains constructive on Thursday but holding under new four-month high at $1327, posted on Wednesday.
The yellow metal pared gains as dollar managed to regain ground after being hit by news from China regarding reduction or halt of US bonds purchases.
Completion of near-term $1326/$1308 correction was positive signal, however, no clear break higher suggests the price may stay in extended consolidation before bulls resume.
Overall structure is firmly bullish and supports continuation of steep uptrend from $1236 which approached its initial target at $1328 (Fibo 76.4% of $1357/$1236) and eyes for further advance in the near-term.
Rising 10SMA which contained pullback, offers initial support at $1313 (reinforced by top of thick ascending 4-hr cloud, spanned between $1313 and $1294) and guarding pivots at $1308/05, loss of which would soften near-term tone.
Res: 1320; 1328; 1334; 1340
Sup: 1313; 1310; 1308; 1305