FxWirePro: Gold Rallies to 1-Month High, Scope for Further Upside
- Gold retreated towards 1249 levels in volatile session on Thursday as dollar firmed after ECB press conference.
- The yellow metal initially jumped after European Central Bank President Mario Draghi said the monetary policy was working and economic recovery was progressing well.
- Yellow metal hit 1-month high at 1268 but declined in quick session after investors liquidated speculative positions in yellow metal.
- Further decline is set to be limited as the support formed at 1240 is set to limit downside and push the commodity towards higher side.
- To the upside, the immediate resistance can be seen 1256, a break above this level would expose the commodity towards 1262 levels.
- To the downside immediate strong support can be seen at 1240, a break below at this level will open the door towards 1228 levels. Support levels: S1-1240, S2-1228, S3-1216 Resistance levels: R1-1256, R2-1262, R3-1270