Gold Resumes Recovery, Double-Bottom Underpins

Spot gold rose to the highest in more than one week on Tuesday, resuming recovery leg from $ 1677 (Mar 31 low) after bulls took a breather on Monday.

Fresh weakness of the dollar and US Treasury yields revived metal’s appeal and lift the price.

Bulls cracked initial Fibo barrier at $ 1723 (23.6% of $ 1959/$ 1676) and eye pivotal barrier at $ 1755 (Mar 18 high) break of which is required to generate stronger reversal signal on completion of a double-bottom on daily chart.

Momentum indicator on daily chart broke into positive territory and support the action, but recovery could lose traction if bulls fail to clear $ 1755 pivot that would keep near-term action in the extended range.

Res: 1745; 1755; 1760; 1775
Sup: 1730; 1722; 1718; 1705