Gold to remain on front foot unless Fed rate hike bets spike

29 Apr 2016

Resistance - $1300-1320, $1350, $1400

Support - $1253, $1227-1223, $1190

• Prices clocked a high of $1287 levels.
  

• Gold’s repeated failure to take out $1227 (23.6% of Dec low – Mar high) followed by a bullish daily close above flag pattern on daily chart indicates prices could cut through $1284 and move towards $1300-1320 levels.
  

• On monthly chart, strong rebound from falling channel marks a convincing bullish break. This adds credence to the bullish action on daily chart.
  

• A break above $1320 would expose $1350 levels.
  

• The bullish bias is at risk if prices see a daily close below $1263, while bears would make a comeback below $1227 levels.