The yellow metal surged higher on Thursday to hit one year high as financial instability and weaker dollar forced investors to take shelter in yellow metal.
- Gold declined initially in the early European session, however after finding support at 1123 the commodity rebounded towards higher levels in quick succession.
- Any downside is expected to be limited around 1130 levels as the support level located at 1123 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
- To the upside, the strong resistance can be seen 1230, a break above this level would expose the commodity towards 1219 levels.
- To the downside immediate support can be seen at 1088, a break below at this level will open the door towards1257 levels.
Recommendation: Go long around 1230, targets around 1252/1265, SL 1210
Support levels: S1-1230, S2-1223, S3-1206
Resistance levels: R1-1252, R2-1257, R3-1273
