Gold is trading at 3 week highs on account of the slump in dollar index caused by a Dovish U.S Fed interest rate event last week. Gold has gained $50 dollars since then and is still adding on incremental gains. A weakening equity market is also helping the metal to rise as investors are flocking towards safe haven thus increasing the demand for the Gold.
Gold had been in a trading range from past 13 days which has a high of $1248 (A) and a low of $1205 (B). Gold broke this range yesterday when it closed at $1246.1 (shown in the daily chart below), this indicates more upside in the metal as it is looking even more bullish. A close above the level of $1245 itself is striking a positive note as it was a resistance on the chart (showed in Gold’s weekly outlook: March 20-24 ).
This breakout strengthens the sentiment and new highs are possibly on the cards.
Positional trade remains the same, gold can be bought for a possible target of $1268 and even higher towards $13o5 which is a key resistance on the chart with a stop loss now placed at $1217.
For positions held from $1218 stop loss should be at $1200.