Short-term corrective Gold XAUUSD pullback. Higher later
Gold prices have extended the rally from the USD1194.55 monthly low of 10 March. However, the push above the USD1263.95 high of February has met with a sharp reaction as overbought short-term studies unwind.
Risk remains for a corrective pullback towards the USD1226.96 low of 21 March and the USD1217.50 break level, but improving weekly studies should limit any immediate break. Critical support within the USD1194.55 low of 10 March and USD1193, (50%) Fibonacci retracement should underpin any deeper reactions, as monthly studies turn mixed
A later close above the USD1270.46 high of 7 April will confirm continuation of the December 2016 rally, with focus then turning to the USD1278.80 and USD1286.80 Fibonacci retracements.
Risk remains for a corrective pullback towards the USD1226.96 low of 21 March and the USD1217.50 break level, but improving weekly studies should limit any immediate break. Critical support within the USD1194.55 low of 10 March and USD1193, (50%) Fibonacci retracement should underpin any deeper reactions, as monthly studies turn mixed
A later close above the USD1270.46 high of 7 April will confirm continuation of the December 2016 rally, with focus then turning to the USD1278.80 and USD1286.80 Fibonacci retracements.