Support - $1242, $1239.26, $1230
- Gold’s sharp rally on Friday post horrible non-farm payrolls release has left it overbought as per on the hourly and 4-hour time frame.
- Consequently, momentum ran out of steam as prices approached $1253 (23.6% of 2011 high-2015 low) in Asia.
- Further correction to $1239-1235 cannot be ruled out, especially since prices are having a tough time holding above weekly 5-MA.
- A recovery from $1239-1235 region followed by a break above Asian session high of $1248.73 could see prices attempt a break above $1253. If successful, doors would open for a rally to $1263 levels.
- On the lower side, break below daily 100-MA at $1224 would signal invalidation, although on a larger scheme of things bears would have more say below $1191 ( Oct 2015 high) levels.