Gold price regained traction and bounced from session low at $1318 hit in late Asian trading, as dollar remains at the back foot after weak US CPI data.
Fresh extension of Thursday’s strong rally when the yellow metal was up nearly 1%, probes again above pivotal barrier at $1322 (Fibo 38.2% of $1355/$1301 fall) close above which is needed to generate further bullish signal.
Strong bullish momentum is building and could help to extend rally further, as bulls are also attracted by twist of daily cloud ($1334).
Session low at $1318 marks initial support, while broken 10SMA ($1313) is expected to keep the downside protected.
Res: 1325, 1328, 1333, 1335
Sup: 1322, 1318, 1313, 1310
