The recent movements in the price of gold since the surge on the shockingly bad NFP have been a microcosm of the year to date. The similarity lies with respect to the 38.6% fibonacci retracement of strong moves higher, showing that after sharp moves the market hasn’t pared back the majority of the gains.
After the pullback to the 38.6% level of the recent leg higher at 1235 yesterday buyers stepped-in and sent the market higher. In doing so price broke above the recent high of 1248 and in doing so marked a fresh impulse. The 1248 level now becomes the first area to look for in terms of support.
There’s no significant resistance until around 1260 region which was an important swing level if we look back to the middle of April with tests of here being met by a turn lower on two occasions (12th and 21st April).
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