Thursday, 24 May 2018

Gold rallies above $1300


The pace in demand for precious metal uplifted significantly after the breaking announcement from President Trump that the planned meeting with North Korea leader Kim Jong-un will not be held. Gold jumped from $1298 to $1306.50 and pinned highest level since mid May. 
Bulls have returned back in the game with strong impacted and added up some more than $10 from yesterday’s highs. Technically speaking the short-term outlook remains bullish. On the four hour time frame the price decisively broke to above the 50% Fibonacci retracement of latest December to January bullish run. Also surpassed the flat 100-day SMA while the 20-day SMA has turned to the upside. RSI is located just below 70 and is losing directional strength. Stochastic is showing extreme overbought conditions and is keeping bullish momentum. 
So far the rally remains capped by the resistance at $1310 and above this level bulls would be tempted by the 38.2% Fibo at $1316. The critical $1300 hurdle turned into support today and below it next relevant is $1291.




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