Gold aims at violating weekly R2 at 1,213

Gold prices soared again on Wednesday, underlying heavy demand for haven assets in time of global economic uncertainty and dovishness of Fed Chair Janet Yellen. Yellow metal could consolidate above 1,200 for the first time since June on Thursday, after it has climbed 14% so far in 2016. The key resistance remains intact, but we expect those monthly R3 and weekly R2 at 1,209/13 to be properly tested over the next 24 hours. By closing above here the metal will be a good position to move up to May 2015 high 1,232.  

he bullish-bearish distribution has stagnated over the last 24 hours at 43-57%, thus maintaining the biggest advantage for the bears in more than a year.