Spot Gold remains under strong pressure on increased expectations of Fed rate hike next week.
Today’s extension of past two-days strong fall took out important support at $1212 (Fibo 61.8% of $1180/$1263 upleg, reinforced by 100SMA).
Daily close below here is needed to confirm bearish continuation that eyes immediate support at $1204 (55SMA) and psychological $1200 level (also Fibo 76.4% retracement).
Further downside would look for $1191 (top of daily Ichimoku cloud that twisted on 02 Mar) that may attract extended weakness on break.
Strongly oversold slow stochastic suggests that bears may run out of stem on approach to $1200 support, however, strong bearish sentiment is expected to limit upside action, with $1212 marking immediate barrier and former strong support at $1222, now reverted to resistance, seen ideally capping.
Res: 1228; 1238; 1243; 1250
Sup: 1222; 1216; 1212; 1203
