Gold’s rally from 1680.83 picks up some momentum after US CPI release, and breaks above 1800 handle. For now further rally is expected as long as 1764.77 support holds. Next near term target is 38.2% retracement of 2070.06 to 1680.83 at 1829.51. This fibonacci level is close to 55 week EMA (now at 1826.89).
Sustained break of 1826/9 will add to that case fall from 2070.06 is totally over. That will also solidify the case that whole corrective pattern from 2074.84 has completed with three waves to 1680.83. In this case, stronger rally would be seen to 61.8% retracement at 1921.37 next.
