Spot Gold extended gains on Friday and dented barriers at $1246/47 (converged 55/10SMA’s) en-route towards targets at $1250 (50% retracement of $1296/$1296 descend) and $1255 ( daily cloud base) in extension.
The yellow metal regained traction on Thursday after fresh weakness of dollar boosted gold price and left higher base at $1235 (Wed/Thu consolidation lows).
Strong bullish structure was reinforced by 10/200SMA golden cross, formed on daily chart, with gold price being on track for the second strong weekly bullish close, signaling firm bullish stance.
Strongly overbought slow stochastic on daily chart warns of rally’s stall and corrective action in the near-term.
Session low at $1243 offers initial support, followed by broken Fibo 38.2% barrier at $1239, which is expected to hold and guard $1235 higher base.
Res: 1250, 1255, 1258, 1261
Sup: 1243, 1239, 1235, 1230
