Gold lost traction on Tuesday in renewed attempt to retest last Friday’s recovery high at $1307, following corrective $1307/$1295 pullback, contained by reversing 10SMA.
Demand for safe-haven gold eased after US President Trump announced that the summit with North Korean President Kim Jong-un is back on track, however, weaker dollar keeps gold price bid for now.
Rising momentum supports gold for renewed attack at key $1307 barrier (200SMA / Friday’s high) after 200SMA repeatedly capped recovery attempts last week.
Eventual break above 200SMA would be strong bullish signal which requires confirmation on close above $1313 (Fibo 38.2% of $1365/$1282 descend).
Repeated rejection at 200SMA would keep gold price within near-term congestion between 10and 200SMA, while return and close below 10SMA ($1295) would generate bearish signal and risk retest of $1282 (21 May five-month low).
Res: 1307, 1311, 1313, 1321
Sup: 1300, 1298, 1295, 1292