Gold failed to sustain above 1346.71 and retreated from 1348.22. But downside was contained by 1319.98 support and gold recovered. Near term bullish outlook is maintained. That is, correction from 1346.7 has completed at 1266.26 already. And rise from there is resuming whole rally from 1160.17. Break of 1348.22 will target 61.8% projection of 1160.17 to 1346.71 from 1266.26 at 1381.54. However, break of 1319.98 support, will probably extend the consolidation from 1346.71 with another decline.
Also, in the bigger picture, 1381.54 is very close to long term fibonacci resistance of 38.2% retracement of 1920.70 (2011 high) to 1046.37 (2015 low) at 1380.36. Prior strong support from 55 week EMA is taken as a rather bullish signal. That raises the chance that gold would finally overcome this fib resistance after multiple attempts over the last few years.
