Rising on risk aversion and Dollar’s weakness, gold surges to as high as 1299.67 so far today. The strong support from 4 hour 55 EMA is a sign of near term strength. Also, current development argues that fall from 1346.71 is merely a corrective move. It has also completed with three waves down to 1266.26. This will now be the favored case as long as 1281.97 support holds. Further rise should be seen to 1324.49 structure resistance first. Break will confirm and target 1346.73 high.
More importantly, gold also drew strong support from 55 week EMA, which is also a sign of medium term strength. That raises the chance of further rise for an eventual break of 1375.17 resistance as well as 38.2% retracement of 1920.70 to 1046.37 at 1380.36. We’ll monitor the momentum after breaking 1324.49 to gauge the chance again.
