Spot Gold remains tall on Wednesday and consolidating above $1270 handle, following strong rally on Tuesday (the biggest one-day gains since 15 Mar), inspired by safe haven buying on rising geopolitical tensions.
Fresh extension higher in early Wednesday posted new 2017 high at $1279, which also marks the highest traded since 10 Nov 2016.
Tuesday’s rally also generated strong bullish signal on eventual close above $1255 (Fibo 61.8% of $1337/$1122 descend).
Bulls are now focusing targets at $1286 (Fibo 76.4% retracement) and $1292 (weekly cloud top), as global political uncertainty maintains strong bullish sentiment for gold.
Rally may be interrupted by mild corrections, with last Friday’s spike high at $1270 marking immediate support, followed by former top of 27 Feb at $1263 and rising daily
Tenkan-sen / broken 200SMA at $1259/57, expected to contain extended downticks.
Res: 1279, 1286, 1292, 1295
Sup: 1270, 1263, 1259, 1257