Gold consolidates around 1095, bias remains bullish- long around 1225, targets around 1247/1272, SL 1206
The yellow metal traded higher on Wednesday as world equities turned lower after oil prices declined, shrugging off a steadier dollar following better than expected US factory output. The yellow metal declined towards 12…
The yellow metal traded higher on Wednesday as world equities turned lower after oil prices declined, shrugging off a steadier dollar following better than expected US factory output.
The yellow metal declined towards 1226 levels in the early European session, before recovering to trade around 1240 levels.
Any downside is expected to be limited as the support level located at 1226 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
To the upside, the strong resistance can be seen 1247, a break above this level would expose the commodity towards 1272 levels.
To the downside immediate support can be seen at 1226, a break below at this level will open the door towards 1218 levels.
Recommendation: Go long around 1225, targets around 1247/1272, SL 1206
