Spot Gold remains congested within $1262/$1274 range; awaiting stronger signal
Spot Gold dipped to $1262 on Wednesday, after solid US private sector jobs data but regained traction quickly and retuned close to session high at $1270.
Fresh acceleration higher sidelined immediate downside risk, sparked by double-Doji left on Mon/Tue which suggests that recent strong rally might be running out of steam.
Gold hit fresh seven-week high on Tuesday at $1274, but was unable to hold gains.
Strong rise in US stock markets encourages investors into riskier assets which could further weigh on gold’s price, but on the other side, doubts about US interest rate increase this year supports the yellow metal.
US non-farm payroll data on Friday will be closely watched for further signals.
Daily technicals remain firmly bullish but overbought conditions warn of pullback.
Extended consolidation could be expected while the price holds within current $1262/$1274 range, while stronger bearish signal could be expected on break lower. Daily cloud that twists next week may also attract the price lower.
Rising 10SMA (currently at $1260) underpins the action and marks significant support.
At the upside, sustained break above $1274 (also Fibo 76.4% of $1296/$1204) would open next target at $1280.
Res: 1271; 1274; 1280; 1288
Sup: 1262; 1260; 1257; 1255