Gold has marked a three-month high on Tuesday, peaking at 1130.93.
Gold has successfully moved above the 100-day moving average and has had a daily close above the 50% Fibonacci for the past two days. This 50% Fibonacci level at 1118.80 is the retracement of the downleg from 1191.47 to 1046.29. (October 2015 to December 2016 decline).
Prices are currently capped by the 200-day moving average which is providing resistance at 1128.45. The stochastic is in overbought territory which suggests some consolidation in the near term or a pull back in prices towards support at the 50% Fibo. A break of this support would target the next support at the 100-day moving average and 38.2% Fibo.
For the current bullish run to continue, a break above the 61.8% Fibo (1135.77) is needed.
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