Our preference: long positions above 1221.00 with targets at 1228.00 & 1230.00 in extension.
Alternative scenario: below 1221.00 look for further downside with 1218.00 & 1216.50 as targets.
During Thursday’s trading session,
the yellow metal broke the resistance of the monthly pivot point at the
1,213.84 to end the trading session at the 1,214.07 mark. On Friday morning,
the gold was resisted by the 200-hour simple moving average to trade at the 1,215.63 mark. In regards to the near-term future, most likely,
the gold will break the resistance of the 200-hour simple moving average at the 1,213.29 mark to trade at the 1,220.00 level.
Besides, the 55-hour simple moving average will try to catch up the yellow metal to
give additional support for the gold during the trading session on Friday.