Spot gold extends weakness into second day as larger downtrend resumed after three-day consolidation and hit the lowest in one year on Thursday.
The metal came under increased pressure on signals that major central banks are likely to start more aggressive approach to tightening their monetary policies that would further hurt demand for the yellow metal.
Fresh bears crack important supports at $1690 zone (Fibo 38.2% of larger $1046/$2074 ascend / Mar-Aug 2021 higher base), break of which is expected to generate strong bearish signal on confirmation of a double-top ($2074/$2070).
Rising negative momentum and MA’s in full bearish setup on daily chart, strongly support the action, with little impact seen so far from oversold conditions, but bears may face headwinds at this zone.
Broken psychological $1700 support reverted to resistance, followed by falling 10DMA ($1715) which should ideally limit upticks and offer better selling opportunities.
Final break of $1680 zone pivot would risk acceleration towards $1655 (200WMA), $1600/$1594 (round-figure / 55MMA) and $1560 (50% retracement of $1046/$2074) in extension.
Res: 1700; 1715; 1723; 1736.
Sup: 1676; 1655; 1608; 1594.
