Spot Gold moved lower in European trading on Monday after holding within narrow range in Asia, as dollar shows signs of regaining ground after being hit fading hopes of stronger US rate hikes pace in 2018 on mixed US jobs data.
Fresh weakness of yellow-metal’s price signals continuation of near-term downmove from $1340 (07 Mar high), as the price extends below cracked $1317 support (Fibo 61.8% of $1302/$1340 upleg).
Close below the latter would be fresh bearish signal in addition to weakening daily techs (MA’s returned to bearish configuration, RSI turns south from neutrality zone, while momentum remains firmly in negative territory).
Bearish scenario on daily close below $1317 pivot would expose key near-term support at $1302 (01 Mar spike low, reinforced by 100SMA).
Broken descending 10SMA offers solid resistance at $1321, which should keep the upside protected.
Conversely, bullish signal will be generated on close above $1326 (broken 55SMA/broken Fibo 38.2% of $1302/$1340 upleg).
Res: 1321, 1326, 1330, 1332
Sup: 1313, 1311, 1307, 1302
