SPOT GOLD rallies to multi-month high on weaker dollar
Spot Gold rallies for the second day and hit multi-month high at $1349 on Wednesday after fresh bullish acceleration broke above former high at $1344 (15 Jan) completing $1344/$1324 corrective phase and signaling continuation of steep uptrend from $1236 (12 Dec low).
US dollar came under fresh pressure and hit new over three-year lows against the basket of major currencies, inflating gold price.
Eventual break above $1344 barrier opens way towards key barrier at $1357 (03 Sep peak), regain of which would generate strong bullish signal for continuation of broader uptrend from $1122 (15 Dec 2016 low).
Former high at $1344 now reverts to initial support, guarding strong supports at $1334/33 (rising 10SMA / top of thick 4-hr cloud), which are expected to protect the downside.
Res: 1350; 1357; 1360; 1367
Sup: 1344; 1340; 1333; 1331