Spot gold opened with a gap higher and edged higher on Monday, lifted by signals that some Western nations are planning to officially ban imports of gold from Russia, in extension to the package of sanctions already imposed.
The technical structure on daily chart remains weak that suggests limited and short-lived upside action, as strong negative signal was generated by a multiple failure at 200DMA resistance ($1844) and weekly close below this indicator.
In addition, the 14-d momentum stays in the negative territory and falling daily cloud continues to weigh on gold price that supports the notion.
Near-term action is expected to remain biased lower while holding below 200DMA, with violation of triangle support line ($1818) to risk test of $1805/00 zone (June 14 trough / psychological) and May 16 low at $1786.
Alternatively, sustained break above 200DMA would ease downside risk, however, much more work at the upside (lift above $1879, June 13 high) would be required to sideline larger bears.
Res: 1844; 1848; 1859; 1857.
Sup: 1828; 1818; 1805; 1800.
