Gold gave back most of its gains overnight to finish unchanged at 1311.00 from the previous day. Having spiked to 1326.00 yesterday on the North Korean headlines in early Asia trading, gold fell victim to the general recovery in the U.S. dollar. New York unwinding the extreme short term positioning the headlines had generated earlier in the day.
Gold’s pullback looks corrective in nature from a technical perspective. In the bigger picture the yellow metal consolidating its gains around the 1311.00 mark well above the previous high at 1301.00. An overbought RSI and some heavy data days from the U.S. into Friday’s Non-Farm Payrolls may slow the charge for now, but overall the technical picture remains constructive.
Gold has resistance at the overnight highs of 1326.00 followed by 1337.00. Support rests at 1301.00 and 1296.00 followed by the ascending trend line, today at 1282.50.