Gold was in deep pull back overnight after failing to sustain above 55 day EMA. At this point, with 1821.96 minor support intact, further rise is still expected. Break of 1875.27 temporary top should reaffirm the case that corrective fall from 2075.18 has completed at 1764.31. Further rally should then be seen back to 1965.50 resistance next.
However, firm break of 1821.96 will indicate rejection by 55 day EMA (now at 1868.84). Such development will revive near term bearishness. Another decline attempt should then be seen for a test on 1764.31 low at least. In this case, we’d likely see the Dollar Index rebound further away from 90 handle.
