SPOT GOLD – recovery eyes $1290 for retest and could extend to daily cloud base at $1294
Spot Gold accelerates higher after descend following strong upside rejection found footstep at $1275 and closed above rising daily Tenkan-sen, keeping hopes of fresh upside alive.
Broadly lower dollar keeps the yellow metal on front foot on Friday for renewed attempt at key $1290 barrier (Fibo 61.8% of $1306/$1263 downleg / Wednesday’s strong upside rejection).
Improving daily studies are increasing support for further advance which needs break above initial barrier at $1284 (daily Kijun-sen) to open $1290 and another key barrier at $1294, provided by daily cloud base.
Cloud is thickening after twisting last week and weighs on near-term action which may stall under cloud base.
Failure to break higher would signal prolonged directionless mode while downside stays limited at $1270 (Tue’s spike low).
Break here would shift near-term focus lower for test of strong support at $1263 (200SMA / 27 Oct low).
Res: 1284; 1290; 1294; 1296
Sup: 1278; 1276; 1270; 1263