Gold is still bounded in consolidation pattern from 1214.30 and outlook is unchanged. With 1182.90 minor support intact, rebound from 1160.36 is expected to resume with an upside breakout eventually. Break of 1213.40 will target 55 day EMA (now at 1219.68) and above.
However, we’d expect strong resistance from 38.2% retracement of 1365.24 to 1160.36 at 1238.62 to limit upside to complete the rebound.
Meanwhile, on the downside, break of 118229 will argue that the rebound has completed much earlier than expected. In that case, retest of 1160.36 low should be seen next.
