Spot Gold is trading in extended consolidation under fresh high at $1344, posted on Tuesday, as broader bulls are taking a breather before resuming higher.
The yellow metal is riding at the third wave of five-wave cycle from $1204, which eyes its next target at $1347 (FE 138.2%), but bulls may be delayed by negative signals from overbought daily studies.
Extended dips should be contained by rising 10SMA (currently at $1320) before bulls resume.
Conversely, early downside rejection would prompt fresh bullish acceleration towards initial target at $1347, possibly to $1352 (04 Sep 2016 peak) in extension.
Gold remains well supported as deterioration of geopolitical situation over North Korea’s nuclear probes maintains strong demand for safe-haven assets.
Res: 1344, 1347, 1352, 1358
Sup: 1331, 1326, 1321, 1318
