Riding on broad based weakness in Dollar, gold stages a strong rebound today. The solid break of 4 hour 55 EMA suggests that fall from 1324.49 has completed at 1280.85, after hitting 1280.85 support. Further recovery could now be seen back to 1324.49 resistance.
At this point, 1276.76 cluster support (38.1% retracement of 1160.17 to 1346.17 at 1275.45) remains intact. Thus, there is no confirmation of medium term bearish reversal. Firm break of 1324.49 resistance will suggest that the consolidation pattern from 1346.71 has completed. And larger rise from 1160.17 could be resuming through 1346.71 high.
Nevertheless, just in case, sustained break of 1275.45/1276.76 should also confirm completion of whole rise from 1160.17. Deeper decline should then be seen to 61.8% retracement at 1234.42 and below.
