Gold jumps sharply today as Dollar loses ground to Yen on risk aversion. The break of last week’s high at 1233.30 indicates resumption of whole rebound from 1160.36.
Focus is now back on 1235.24/1236.99 cluster resistance zone (38.2% retracement of 1365.24 to 1160.36 at 1238.62, 100% projection of 1160.36 to 1214.30 from 1183.05 at 1236.99). For now we’d expect this resistance to hold to bring down trend resumption. On the downside, break of 1219.90 minor support will suggest that the rebound is completed and turn near term outlook bearish.
However, decisive break of 1235.24/1236.99 will argue that the trend could have reversed and further rally might be seen back to 61.8% retracement at 1286.97 and above.
