The multi-month bullish GOLD trend continues apace and the latest break higher has seen both the psychological $1,900/oz. level and channel resistance broken. We noted last week that trend resistance was under pressure and today's move needs to be consolidated to re-affirm the positive nature of the market.
The price targets remain the same with the 23.6% Fibonacci retracement of last year's March-August rally situated at $1,928/oz. ahead of a cluster of prior highs starting at $1,960/oz.
If the commodity maintains its price ascent, initial upside constraints could transpire from the 1,918 barrier ahead of the 1,928 high, both last seen around early January. In the event these levels fail to mute growing buying interest, the price may then propel towards the 1,938-1,941 resistance band before targeting the January 6 peak at 1,959.
To the downside, preliminary support may develop at the 1,900. A further retreat in the commodity's price could tackle downside limitations in the region of 1,838, which involves 38.2% level. Should the price sink even lower, sellers' efforts could be challenged by the key support section of the ascending line.