Gold recovers back to 200-DMA

After an initial dip to $1261, Gold managed to recover all of its lost ground and has now turned mildly positive amid prevalent risk-off market sentiment.

Currently hovering around the very important 200-day SMA near $1267 region, the yellow metal caught fresh bids at lower level despite of a broadly stronger US Dollar, which tends to weigh on dollar-denominated commodities, including gold. Persistent weakness in European equity markets is underpinning the precious metal's safe-haven appeal and assisting the ongoing recovery momentum. 

Nevertheless, the metal now seems all set to end the week on a positive note and snap three consecutive weeks of losing streak.

Carol Harmer, Founder at charmertradingacademy.com, notes, "There is no reason why we cannot trade higher on Gold...and we are positioned that way also.... Now the break has been made we need to stay above the 1262/60 support...This is the break point from the pennant we saw...So as long as we trade above here I believe God traders will still want to be long..."

Projected levels

Carol Harmer further writes, "we stay trading above the break point of 1260 and we should be fine with longs...Now 1275 as I said was a good level....it has held now twice...the 3rd time we should break....and if we do we look for 1282 to 1287..."