Gold prices surged in the intraday levels, continuing its winning streak in the short term and succeeding eventually in breaking through the resistance of 1,230.80, representing the ratio 61.8% of Fibonacci retracement levels for a descending wave in the long term (from 1,344.87 to 1,046.25), settling above it which shows that the metal has some way to go up still. Gold then bounced lower a bit as traders took profit and to vent off that overbought saturation apparent in relative power indicators, leaning on the support of 1,230.80 and readying to launch higher again.

Therefore we reaffirm our positive outlook for the precious metal, targeting the resistance of 1,279.40, which represents the ratio 76.4% of the same retracement levels mentioned earlier.

Trend Bullish