Spot Gold is consolidating above fresh eight-week low at $1214, posted on Tuesday, but recovery action was so far limited and unable to stronger penetrate daily cloud and clear 100SMA to signal stronger rally (daily cloud base lies at $1222 and 100SMA at $1224). Gold received support from political situation in the USA after president Trump dismissed FBI chief, but rising hopes of Fed’s interest rate hike in June keep gold’s gains limited. However, stronger bounce could be expected on bullish signal from daily RSI/slow stochastic which are reversing from oversold territory. Close above 100SMA will be seen as bullish signal for extended recovery towards strong barriers at $1239/42 (daily cloud top / Tenkan-sen). Overall bearish structure keeps focus at the downside and looks for test of next target at $1210 (weekly cloud base), after current corrective phase is completed.
Res: 1225; 1228; 1236; 1242
Sup: 1222; 1216; 1214; 1210
