Spot Gold hit new low at $1293 on Thursday, in extension of Wednesday’s fall after Fed signaled possible additional rate hike this year.
The yellow metal is currently riding on the third wave (from $1334) of five-wave sequence from $1357, which hit its FE100% at $1294 and could travel further down, towards it FE 123.6% at $1282.
The notion is supported by bearishly aligned techs (10/20SMA bear-cross) and formation of daily Tenkan-sen/Kijun-sen bears cross, which generate additional pressure on the price.
In addition, negative fundamentals on Fed’s indication of another rate hike this year, weighs on near-term performance of interest rate-change sensitive gold.
Session high at $1301 marks initial resistance, followed by Wednesday’s peak at $1316.
Res: 1301, 1305, 1311, 1316
Sup: 1292, 1282, 1280, 1276
