“¢ Gold regained positive traction on Thursday and continued scaling higher through the mid-European session, retesting the overnight swing high near the $1277-78 supply zone.
“¢ The mentioned region coincides with 23.6% Fibonacci retracement level of the $1303-$1269 recent slide and should now act as a key pivotal point for any further near-term recovery.
Meanwhile, the intraday positive move has now lifted the precious metal above 100-hour SMA for the first time in around a week and support prospects for additional gains amid a fresh wave of global risk-aversion trade.
Technical indicators have already started gaining positive momentum on the 1-hourly chart and recovering within the negative territory on 4-hourly/daily charts, reinforcing prospects for a follow-through buying.
A sustained move above the current resistance zone, leading to a subsequent move beyond weekly tops- around the $1279 level will reaffirm the constructive outlook and lift the commodity towards the $1285-86 region.
The mentioned area marks a confluence hurdle – comprising of 200-hour SMA and 50% Fibonacci retracement level, which if cleared might be seen as a key trigger for near-term bullish traders and pave the way for additional gains.
Gold 1-hourly chart