Gold set a new one-year high of 1283.43 today before easing to around 1270. The rally since the start of the year has led to the bullish crossover of the 50-day moving average with the 100- and 200-day moving averages, underlining the current positive bias.
Both the RSI and the MACD remain in positive territory, suggesting scope for further gains in the near term. However, with prices moving along the upper Bollinger band for the past week, a short-term correction or pause in the rally may be in sight.
If prices continue to break out of the upper Bollinger band, resistance may come at the key 1300 level. While on the downside, the nearest support is at 1260. A drop below this level could pave the way for further losses towards the centreline of the Bollinger band, which would weaken the upside bias.
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