Gold price ticked higher on Monday and probed above falling 10SMA to peak at $1318, but gains proved to be short-lived for now.
The yellow metal is attempting to sustain recovery off $1300 zone, where 200SMA contained larger descend from $1355, but recovery attempts face strong headwinds and are on track to be repeatedly capped by falling 10SMA.
Weak momentum studies and overall bearish setup of daily MA’s maintain pressure, as the US dollar remains gold’s key driver and dollar bulls took a breather which resulted recent recovery attempts.
The downside is expected to remain vulnerable while 10SMA caps, keeping risk at $1304/00 pivots (200SMA/psychological support) loss of which could spark fresh bearish acceleration.Close above 10SMA (currently at $1315) is needed to generate bullish signal and open way for recovery extension towards next pivots at $1322/23 (Fibo 38.2% of $1355/$1301/100SMA).
Res: 1315, 1318, 1323, 1328
Sup: 1311, 1308, 1304, 1300
