Short-term bullish bias
Key levels: downside: 1304 / upside: 1311

Bullion is rallying towards both 20 and 30-day MAs where we could expect stiff selling pressures. The break of the 1303 support along with a bearish MA cross is a sign that the rally has over-extended and we could see a consolidation in the medium term, if not a reversal.

On the 4H chart, the bullish MA cross near the daily support of 1280 was a strong signal that the metal might make a U-turn. The upside seems clear with a key resistance at 1325. The hourly chart is painting the same bullish picture with a series of higher highs. The 20-hour MA is acting as a support in case of a pullback. However, the RSI indicator has entered into the 70 over-bought zone, a short-term pullback is plausible.

1311 is the major target on the upside and 1304 is the immediate support level should the price retrace.

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