HomeContributorsTechnical AnalysisGold Surges above $1200 as Italian Budget Issue Hits Markets

Gold Surges above $1200 as Italian Budget Issue Hits Markets

Spot Gold accelerated strongly higher in early American session Monday, gaining nearly 1.5%, in the biggest daily rally since 24 Aug, driven by fresh safe-haven demand on rising concerns about Italy’s budget issues.

The yellow metal price surged through the base of thick daily cloud ($1191) which capped action in past three days and took out converged daily MA’s ($1197/98), to extend gains above psychological $1200 barrier.

Fresh rally also cracked barrier at $1203 (falling 55SMA), confirming fresh strong bullish stance.

Regaining strong safe-haven appeal after hawkish Fed inflated the greenback, could drive gold price higher to challenge key barriers at $1214 (28 Aug high) and $1217 (Fibo 38.2% of $1309/$1160 fall).

Bulls need confirmation on close above $1200 level to generate bullish signal for further advance.

Strengthening momentum studies, which made bull-cross and is about to break into positive territory, support scenario.

Broken converged 10/20/30MA’s now turned to solid supports ($1198/97) which are expected to contain potential dips and keep bulls in play.

Res: 1206; 1211; 1214; 1217
Sup: 1203; 1200; 1197; 1193

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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