Spot gold regained traction and moved higher in early Friday’s trading, as the dollar slipped on rising expectations that the Fed would pause its rate hike cycle this year.
The yellow metal remains congested between $1298 and $1276 for the second week after larger uptrend ran out of steam on approach to psychological $1300 barrier.
Consolidation was so far held by rising 10SMA which helped to keep overall bullish structure intact.
Friday’s close above 10SMA would add to positive outlook for renewed attack at $1300 barrier, break of which would unmask targets at $1309/16 (14 June lower high / Fibo 76.4% of $1365/$1160 fall).
Conversely, initial negative signal could be expected on close below 10SMA which would signal deeper correction and expose rising 10SMA ($1270).
Res: 1295, 1298, 1300, 1309
Sup: 1286, 1276, 1273, 1270