Investors were startled yesterday due to several world developments, led by sharp declines in Asian shares, notions that Greece could pull out of the union if more liberal leaders are elected and World Bank forecasted that Russian economy will contract by 0.7% in 2015. Gold prices ended sharply higher and hit six-week highs yesterday on safe-haven demand.
GOLD rallied to a daily resistance at 1,237.96 on yesterday session, closing in near the high of the day range with a wide range. The commodity is in a recovery phase, closing above the 10 and 50 day moving averages.
Expecting a downward move to 1204.70 on a bounce off the daily resistance at 1237.96 (scenario 1) or a break above the daily resistance at 1244.96 we may see a push toward the next daily resistance at 1268.42 (scenario 2).