Spot Gold dipped below daily cloud after Fed Yellen’s remarks inflated dollar, which received further support on better than expected US q3 GDP numbers (3.3% vs 3.2% f/c). Fresh bearish acceleration and extension through cloud base weakened near-term structure, seeing increased risk of further easing.
Initial negative signal was generated on Monday’s strong rejection just ahead of psychological $1300 barrier and Tuesday’s Doji candle.
Close below daily cloud today would be additional bearish signal for further retracement of $1263/$1299 recovery leg.
Bearish acceleration found footstep at $1285 (Fibo 38.2% of $1263/$1299) which marks next pivot.
Break here would open $1281 (50% retracement/daily Kijun-sen) and $1277 (Fibo 61.8%) in extension.
Broken cloud base marks immediate resistance at $1288, with return and close in the daily cloud expected to ease bearish pressure.
However, stronger recovery needs to regain session high at $1296 to shift near-term focus higher again.
Res: 1288; 1290; 1296; 1299
Sup: 1287; 1285; 1281; 1277
