Spot gold retests $1250 barrier (10 Dec high) on Tuesday, in extension of previous day’s rally, signaling full retracement of $1250/1232 corrective phase and possible continuation of larger uptrend from $1196 (13 Nov low).
Bulls eye key barriers just above $1250 – Fibo 61.8% of $1309/$1160 at $1252 and 200SMA at $1253, as sustained break here would generate strong bullish signal.
Fresh advance is supported by expectations of Fed’s dovish tone regarding the pace of rate hikes in 2019, as widely expected raise of interest rate on policy meeting on Wednesday, has been already priced in.
Strong bullish momentum and daily studies in positive configuration, support scenario.
Corrective dips are expected to provide better buying opportunities while holding above rising 10SMA ($1242).
Res: 1250; 1252; 1253; 1260
Sup: 1245; 1242; 1238; 1235
