Gold’s rally accelerates today and reaches as high as 1545.34 so far. Escalation in Middle East tensions is the main driving force behind safe haven flow into gold.
Medium term up trend looks ready to resume with focus now on 1557.04 resistance. Break will confirm this bullish case and target 61.8% projection of 1266.26 to 1557.04 from 1445.59 at 1625.29. On the downside, break of 1516.58 support will delay the bullish case and extend the consolidation pattern from 1557.04 with another fall first.
Also, as the current rally could be the fifth leg of the five-wave sequence from 1160.17. We’d look for topping signal around 1625.29.
