Gold prices gained in Asian session posting another new high extending the rally which saw good momentum after crossing $1220 amid fresh worries over worsening U.S and Iran relationship regarding a missile test spooking the investors to turn towards safe haven boosting the demand for the yellow metal.
Gold yesterday closed above the hurdle of $1229 which is taken as a positive for the near term price movement.
On the daily chart-
Gold is trading above the $1229 mark which now is an immediate support confirmed by a bullish ray line. This price movement in the shaded region shows the range this metal can continue to trade into if its low of $1220 (A) is not breached. The shaded region demonstrates the potential of the up-move with the high at $1274 (B). But the run-up is not that easy with $1248 acting as a major resistance where the metal might consolidate before heading higher.
On contrary a conclusive breach of $1220 may spill over towards $1208, and if this level fails then metal might test the support at $1196-$1198 zone.
Overall the metal is in a bullish tone expected to test $1248 in near term with $1300 as a long term target.