Gold finally breaks 1214.30 resistance to resume the rebound from 1160.36, with strong upside momentum. Further rally would now be seen. But at this point, we’re seeing such rally as a correction to the fall from 1365.24 to 1160.36. The key lies in 1235.24/1236.99 cluster resistance zone (38.2% retracement of 1365.24 to 1160.36 at 1238.62, 100% projection of 1160.36 to 1214.30 from 1183.05 at 1236.99). For now we’d expect this resistance to hold to bring down trend resumption.

However, decisive break there will argue that the trend could have reversed and further rally might be seen back to 61.8% retracement at 1286.97 and above.

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