Spot Gold rallied on Wednesday on weaker dollar but was so far unable sustain extension on Thursday, after upside attempts were capped by falling 10SMA at $1259 which marks one-week high.
Positive fundamentals are supportive for the yellow metal, but technical studies remain in full bearish setup on daily chart and see risk of recovery stall.
Initial requirement for bullish continuation is close above 10SMA ($1257), with extension above 200SMA ($1267) needed to generate stronger bullish signal.
The downside is expected to remain vulnerable while falling 10SMA/base of falling 4-hr cloud caps, with stronger bearish signals expected on reversal below $1250/$1245 (Fibo 38.2% and 61.8% of $1236/$1259 upleg).
Res: 1257, 1259, 1264, 1267
Sup: 1253, 1250, 1245, 1240
