Gold consolidates around 1116 levels, bias remains bullish- Long around 1110, targets around 1120/1125, SL 1095
The yellow metal rose to its highest levels in almost 12 weeks on Tuesday as rout in Chinese equities overnight hurt risk appetite, pushing investors towards alternative assets. The commodity dipped for a short while in …
The yellow metal rose to its highest levels in almost 12 weeks on Tuesday as rout in Chinese equities overnight hurt risk appetite, pushing investors towards alternative assets.
The commodity dipped for a short while in the European session, however after European stocks steadied and oil reversed course from daily lows the yellow metal rebounded back into positive territory.
Any downside is expected to be limited around 1112 levels as the support level located at 1110 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 1116, a break above this level would expose the commodity towards 1120 levels.
To the downside immediate support can be seen at 1110, a break below at this level will open the door towards 1103 levels.
Recommendation: Go long around 1110, targets around 1120/1125, SL 1095
