GOLD - USD - Gold Edged Sharply Higher and is Approaching $1,230 Key Level - 03/16/2017 (GMT)

The precious metal had an aggressive run since yesterday and soared more than 2% as it is approaching our recommended target at $1,230 which overlaps with the 23.6% Fibonacci retracement level of the last upward move with low on December 15th and high on February 27th. If the price rises above the latter barrier, it will open the door for the 200-daily SMA at $1,250.

The XAU/USD pair exploited the greenback’s weakness and traded higher after the bounced off the $1,196 support barrier which is near with the 100-daily SMA. In addition, on the same chart, the technical indicators surged higher confirming the bullish tone. The RSI indicator climbed above its mid-level and is strengthening whilst the MACD oscillator is creating a bullish crossover with its trigger line.