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, as a result, the speculator in this precious metal are capitalizing this news completely and prices have 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 to 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 to 13-months highs in the recent past (at 1294.41) (see monthly charts).
Most notably, after long-lasting halt in trajectory, has signaled trend reversal likely to prolong
However, it has shown a considerable jump from last 6 months that has taken the current prices above 7 & 21EMAs along with slight the convergence shown by leading oscillators has triggered off environment and now it is consolidating zone, which means even though the prices were seeing little skepticism at 1286 zones (50% fibo) the major trend is most likely to encompass medium term uptrend with short-term obstacles.
In a medium term perspective, one can also eye on long positions in the gold's mid-month for unlimited returns that could be entered by the speculator to profit from a rise in the price of the underlying precious metal.