The precious metal was seen rising for two consecutive sessions. The rebound in price coincides with the test of the 200-day moving average. The gains come despite the US economic data showing a rebound in activity. However, the broader central bank outlook remains dovish leading to the upside in gold prices.
Can Gold Maintain the Upside Correction?
Although price has rebounded, the upside correction is yet to see the test of the 1285 handle. This price level remains key as resistance is quite likely to be established in the area between 1285 – 1290. A reversal off this level, of course, could signal the end of the correction as gold prices could begin to extend lower.
