Spot Gold bounced to $1270 high on Monday after last week’s strong three-day acceleration from $1295 high found support at $1264 (Fibo 38.2% of $1214/$1296, 09 May/06 June rally, reinforced by rising 20SMA).
Correction from $1295 should be ideally contained here in order to keep overall bulls intact for fresh attempts towards psychological $1300. Traders keep an eye on the UK, as increased political uncertainty may increase demand for safe haven gold.
But ob the other side, rising pressure come from widely expected Fed’s rate hike on Wednesday, when FOMC two-day meeting ends that may put gold price, sensitive on changes of US interest rates, under increased pressure.
Loss of $1264 handle would expose supports at $1258 (55SMA), $1255 (50% retracement) and $1245 (Fibo 61.8% of $1214/$1296).
Limited correction is expected with 10SMA/daily Tenkan-sen ($1275/$1277) expected to cap.
Res: 1270, 1275, 1277, 1281
Sup: 1264, 1258, 1255, 1245
