Spot Gold holds in a narrow range on Tuesday and confirms indecision after Monday’s action ended in Doji candle with long upper shadow.
Overall structure remains bearish, but the price is struggling at $1291 pivot (Fibo 61.8% of $1282/$1307 bull-leg) following repeated failure to close below cracked support.
Strong momentum and slow stochastic entering oversold zone may keep the downside limited further, but recent upside attempts were repeatedly capped by 10SMA ($1297) and also weighed by 4-hr cloud (spanned between $1294 and $1299).
Break and close above 10SMA is needed to ease downside pressure and signal higher base formation for possible further recovery.
On the other side, easing concerns about geopolitical tensions between the US and North Korea reduced safe-haven demand, while gold also faces further pressure on strong expectations of US rate hike this month.
Bearish scenario sees eventual close below $1291 pivot as a trigger fresh weakness which could extend towards key support at $1282 (21 May low).
Res: 1294, 1297, 1300, 1304
Sup: 1291, 1288, 1285, 1282
