Gold Expected to Turn Higher in The Coming Months
The anticipated rally has reached congestion around USD1300, with a corrective pullback now unfolding as weekly studies unwind overbought areas. Downside risks, however, are expected to be limited, as monthly studies continue to improve. Support is at the USD1240.25, (38.2%) retracement of the November-January rally, with USD1220 thereafter.
This latter level is expected to remain intact, however, as positive monthly studies promote fresh buying into weakness. Following this corrective pullback, fresh gains are looked for, as positive divergence unwinds on the rising RSI, with later clearance of USD1300 opening up the USD1345.20 high of July in a more significant rally.
investors can maintain an Overweight stance.
