Gold extended upside movement on Tuesday, increasing the price of yellow metal to more than $1200 an ounce, following the release of some key economic news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the yellow metal is being traded around $1213.52 an ounce. A hurdle can be noted near $1240.58, the horizontal l resistance area  ahead of  $1275, the trendline resistance area and then  $1300, the psychological number as demonstrated in the given below daily chart.

On the downside, a support can be noted near $1212, the 50% Fibonacci retracement ahead of $1200, the confluence of psychological number as well as horizontal support area and then $1133, the lower trendline support zone. The technical bias shall remain bearish as long as the $1337 resistance area is intact.

Fundamental Analysis

Prime Minister Theresa May offered her most explicit vision of Britain’s future relationship with its European Union neighbors, pledging to quit the single market and instead seek a customs agreement with the bloc to deliver “a smooth and orderly Brexit.” Laying out the government’s Brexit plans with 12 core objectives, May said that she was confident a deal can be reached with the European Union once the trigger to leave is pulled by the end of March. She called for a “phased approach” to implementing the new rules to ensure Brexit is “smooth.”

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy in short to medium term.