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GOLD was recently hammered and pushed towards the $1230-20 support area where the yellow metal buyers managed to hold the downside. GOLD briefly consolidated for some time, and it looks like that it might continue heading up in the near term, as it broke an important resistance during the Asian session. There is only one major risk event scheduled in the US, which might impact the prices of the yellow metal. The US PPI data will be published later during the NY session. Let us wait and see whether GOLD would manage to gain traction after the release or not.

There was a critical resistance trend line on the 4 hour chart of GOLD, which was breached during the Asian session. Currently, it is struggling to clear the 23.6% fib retracement level of the last fall from the $1277 high to $1225 low. However, it looks like GOLD buyers might break it soon to push the yellow metal prices higher. The next level of interest can be seen around the 38.2% fib retracement level at $1245. Any further gains might take GOLD towards the 50% fib retracement level. The only thing to worry about is the fact that the 4H RSI is still below the 50 level. GOLD bulls need to take control to push it higher in the short term.

On the other hand, if GOLD dives again, then it might find support around the broken trend line, followed by the last low of $1225.

Overall, buying dips might be preferred as long as the prices stay above the last low or if the RSI breaks above the 50 mark.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com/?affref=300012