Spot Gold price surged above $1.1300 barrier on Wednesday, signaling an end of six-day congestion, marked by multiple long-legged Dojis.
Decision of US President Trump to cancel planned historical summit with North Korea, causing uncertainty in the markets which sparked fresh safe-haven demand.
Gold price rose to new over one week high at $1306, where 200SMA limited rally for now.
Initial bullish signals were generated on lift above 10&20SMA’s with strengthening momentum underpinning the advance.
However, bulls need firm break above 200SMA to signal further recovery, with lift above $1313 (Fibo 38.2% of $1365/$1282 descend) to confirm and generate stronger reversal signal.
Corrective dips should remain above broken 10SMA ($1297) to keep fresh bulls in play.
Res: 1307; 1309; 1313; 1315
Sup: 1300; 1297; 1292; 1287