Gold’s rally accelerates to as high as 1394.27 today, riding on broad based weakness in Dollar. From near term point of view, 61.8% projection of 1160.17 to 1346.71 from 1266.26 at 1381.54 is already taken out. Next target will be 100% projection at 1452.80. For now, near term outlook will remain bullish as long as 1341.34 support holds, in case of retreat.
From a long term point of view, 38.2% retracement of 1920.70 (2011 high) to 1046.37 (2015 low) at 1380.36 finally broken. Sustained trading above this level will pave the way to 100% projection of 1046.37 to 1375.17 from 1160.17 at 1488.97, which is reasonably close to above mentioned 1452.80 projection level. This resistance zone will be key to decide whether the rise from 1046.37 is an up trend or just a corrective move. We’ll pay attention to the reaction from there to judge at a later stage.