Gold Continues to Recover

Gold prices managed to achieve the first target required to be touched during the previous analysis, located at 1754, to record its highest level, 1758.

Technically, and with a closer look at the 4-hour chart, we find the simple moving averages continue to hold the price from below, and the 50-day average meets around the 1740 support level and adds more strength to it.

Hence, we believe that there is a possibility of further upside movement during today’s session targeting 1765 Fibonacci 50.0% Fibonacci retracement, a next official leg.

The activation of the suggested bullish scenario depends on the stability of gold prices above 1740/1739, bearing in mind that breaking the aforementioned level delays the chances of an upside, but does not eliminate them, and we may witness a re-test of 1730 and 1723 before attempting to rise again.

S1: 1739.00	R1: 1765.00
S2: 1723.00	R2: 1773.00
S3: 1714.00	R3: 1790.00