Spot Gold moved lower on Monday after last week’s strong rally peaked at $1291. Profit-taking on increased safe-haven demand rally and overbought daily studies triggered pullback.
Gold price eased to $1280 so far, after failing to regain $1292 peak in early trading on Monday and eye a cluster of supports below.
Initial support lies at $1276 (hourly cloud base / Fibo 38.2% of $1251/$1292 upleg), followed by previous high of 01 Aug at $1274 and 50% retracement / daily Tenkan-sen / 10SMA at $1271.
Overall bullish structure sees $1271 support as ideal reversal point before fresh attempts higher for final attempt towards key barrier at $1296 (06 June peak).
However, deeper correction cannot be ruled out as strong pressure on dollar on geopolitical tensions is easing and indicators that reversed from overbought territory on daily chart show a plenty of room at the downside.
Next pivotal supports at $1267 (Fibo 61.8%) and $1263 (rising 20SMA) could come in focus on violation of $1271 support.
Res: 1287, 1289, 1292, 1296
Sup: 1280, 1276, 1274, 1271
