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    Gold retrace to $1350, bullish momentum seems intact Haresh Menghani

    Extending its bullish momentum, Gold on Monday added on to its recent strength and rose to $1357 before retracing to currently trade just above $1350 level. Earlier during Asian trading session, the precious metal rose and moved closer to $1358 level touched on June 24, when Britain voted to end its membership with the European Union sent global financial markets into a tailspin. Hopes of additional stimulus from Chinese policymakers, in order to support sluggish economic growth, boosted commodities across the board and triggered a short-covering move in the yellow metal during Asian session.Adding to this, a broadly weaker US Dollar is also seen extending support to higher Gold prices. Moreover, economic uncertainty surrounding the Brexit vote is boosting the safe-haven demand and might continue fueling further rally in the precious metal.Technical levels to watchAbove $1358, the metal is likely to extend the rally immediately towards $1370 level, marking 61.8% Fibonacci expansion level of Brexit-led sharp up-swing and subsequent retracement. A follow through buying interest might continue boosting the commodity further towards March 2014 highs resistance near $1390 level. On the downside, profit-taking move below $1340 seems to drag it back towards $1326-25 resistance break-point, turned support. A further drop below this immediate support is likely to be limited till $1310 strong support area, which if broken might now trigger a near-term corrective move.


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