During
the past three weeks Gold was trading lower, but few days ago started to move
to the upside. Bulls have found enough strength to conquer the strong
resistance located at $1280 (Fibo 38.2%, formed by September 22th high at
$1343 and October 7th low at $1241). Gold even extended its strong bullish
movement and bulls attacked the Fibo 61.8% at $1304 to currently trade at
$1305, which is an almost one month high.
Considering
the fact that the US dollar is suffering now and is vulnerable by Fed’s
decisions on monetary policy and also by the upcoming elections in the United
States, market participants turned eyes to the safe heaven precious metal.
RSI is
placed now at the oversold area, pointing north and confirm the bullish trend.
Stochastic is showing extreme an overbought market and is displaying lack of
momentum.
In
case of closing above $1292, the strong upward movement will be confirmed. Next
resistance is located at $1307. Looking to downside first support is seen at
$1287 and second at $1287.
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