The current price jump above 21DMA & intraday breach of resistance at 1250.75 is likely to bring in a more environment.
Especially after Yellen’s dovish hints on deferral of speculated rate hikes, this precious metal has been very susceptible to moves in U.S. interest rates.
Usually, a gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Daily has been converging to the prevailing rallies ever since it has dropped and tested supports at 1200 levels.
Same is the case with , a clear %k crossover has been maintained right from an oversold trajectory that signals the healthy momentum in ongoing buying sentiments.
Having said that, on a broader perspective the precious metal has been quite puzzling and struggled to hold on to 13-months highs in the recent past (at 1294.41) (see weekly charts).
Leading oscillators are not favourable to the interim bulls, after the trend has seen more than , it is now rejected below 50% fibo retracements and tight resistance at 1286.
However, it has shown a considerable jump from last 2 months that has taken the current prices above 7 & 21EMAs along with slight the convergence shown by leading oscillators has triggered off environment, which means even though the prices were seeing little skepticism at 1286 zones. The major trend is most likely to encompass medium term uptrend with short-term obstacles.
Intraday speculators can eye on boundary binaries keeping 1255.99 upper brackets and 1245.40 as lower brackets.
In a medium term perspective, one can also eye on long positions in the gold's mid-month for an unlimited returns that could be entered by the speculator to profit from a rise in the price of the underlying precious metal.