The Gold price last week, once again, tested the key 61.8 Fibonacci level ($1287.00) support zone from last year’s significant move down. Today it has rallied up to eight-session highs, cracking the key $1,300 level, to a high of $1,303.705, up from Asian lows of $1,295.65. A bit of Dollar weakness has supported, as have PBoC reports indicating China bought gold for its reserve stocks in March, marking the fourth straight month of purchases. Further USD weakness into the NY session and the next upside target come at the $1,307.25-11.50 zone from the March 28 peak.
The H4 chart breached the 50-period moving average and the MACD 0 line earlier today. The 200-period moving average and 23.6 fib level ($1302.00) provide a key resistance level to further advances today. Support sits at the 50-period moving average at $1295.00.
Head Market Analyst
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