XAUUSD – bulls look for further advance on break above daily cloud top
Spot Gold hit new one-month high at $1293, in extension of steep rally from $1293 (12 Dec low).
Fresh US dollar’s sell-off on Thursday additionally boosted yellow metal’s strong bullish sentiment, with thinner volumes ahead of New Year holidays, helping to maintain the pace.
The price is holding deeply in thick daily cloud which was penetrated on Wednesday and bulls eye key barriers at $1297 (daily cloud top) and $1299 (27 Nov peak).
Full retracement of $1299/$1236 bear-leg would open way for stronger correction of larger $ 1357/$1236 descend.
Firm break above psychological $1300 barrier would expose initial target at $1306 (16 Oct lower top) and pivotal $1311 barrier (Fibo 61.8% of $1357/$1236 fall) in extension.
Broken 100SMA which holds today’s action marks initial support at $1286, followed by broken daily cloud base at $1281, which is expected to keep the downside protected.
Res: 1293; 1297; 1299; 1306
Sup: 1286; 1281; 1277; 1273