“¢ Gold reversed an early dip to 50-day SMA support and is now looking to extend the momentum beyond the key $1300 psychological mark after weaker US macro data.
“¢ However, given this week’s bullish break through a short-term descending trend-line resistance, the set-up remains in favor of bullish traders amid jittery global markets.
The mentioned trend-line extends from yearly/10-month tops touched in Feb. through March/April monthly swing highs and should now act as a key pivotal point for short-term traders. The fact that the commodity has managed to find acceptance above 100-day SMA and oscillators on the daily chart have started gaining positive traction adds credence to the constructive outlook.
A sustained move beyond April monthly highs resistance near the $1308-10 region will reaffirm the bullish bias and set the stage for a further appreciation towards the $1322-24 supply zone. Only a sustained weakness below 50-day SMA, leading to a subsequent break through the trend-line resistance break-point – now turned support near the $1285 level would negate the bullish set-up.
Gold daily chart
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