Spot Gold holds within tight range on Monday after Friday’s trading ended in Doji candle but maintains bearish bias as daily techs remain in full bearish configuration. Monday’s action holds above Friday’s low at $1217 but upside attempts were limited under falling 10SMA ($1225) which maintains bearish pressure and marks initial resistance. US Federal Reserve are ending two-day policy meeting on Wednesday and expected to signal rate hike in September, as US data remain solid. The latest release, US Q2 GDP showed the fastest growth pace since 2014 but the greenback showed limited reaction on upbeat data, as traders doubt the sustainability of growth. According to the technical studies, negative outlook could be expected while the price remains capped by falling 10SMA. Scenario sees retest of key supports at $1215/11 (Fibo 61.8% of larger $1122/$1366 rally/19 July low) clear break of which would signal continuation of broader downtrend from $1366 double-top. Alternatively, close above 10SMA would ease bearish pressure but sustained break above $1235 double-top (23/26 July highs) would generate stronger reversal signal.
Res: 1225, 1229, 1235, 1238
Sup: 1219, 1217, 1215, 1211
