May 24 2018

Yellow metal likely to shine

After touching 2018 lows of 1281.76, gold seem to have found support around the same and consolidated on daily charts at the same level. The retracement of 1285 (61.8 % Fibonacci retracement from 1235.92 to 1366.07). On daily chart stochastic has shown positive divergence against the price action indicating upside in gold. A break of the near term trend line support acting as resistance now and break of psychological level of 1300 is likely to take gold higher towards 1316 (38.2% Fibonacci level) to 1325 (50 Day SMA). Momentum indicators like MACD crossover below zero line and stochastic crossover below 20 level also indicating upside in yellow metal.