At this point, Gold is still struggling to take out 1235.24/1236.99 cluster resistance zone decisively after two attempts this week. For now, we’d continue to expect strong resistance around this zone to limit upside to complete the corrective rise from 1160.36. This resistance zone represents 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.
On the downside, break of 1225.40 minor support will be the first sign of near term bearish reversal. Deeper fall should then be seen to 1219.90 support for confirmation.
Still, decisive break of 1235.24/1236.99 will invalidate our view. That will argue that the trend could have reversed and further rally might be seen back to 61.8% retracement at 1286.97 and above.
