Spot Gold is standing on Monday some $20 lower from fresh one-year high at $1357, posted last Friday, as tension over North Korea eased, inflating the US dollar and reducing demand for safe-haven precious metal.
Monday’s opening with $12 gap lower was negative signal for Gold price which could extend pullback towards rising daily Tenkan-sen ($1327) and $1323 (Fibo38.2% of $1267/$1357 upleg).
The notion is supported by reversal of daily RSI / slow stochastic from overbought zone which is bearish signal.
Also, estimates for economic damage look lower than expected that could weigh on gold’s price, with extended correction expected to ideally stay above $1323 to keep broader bulls intact.
Increased downside risk could be expected on bearish extension below rising 20SMA at $1309.
Res: 1340, 1347, 1350, 1357
Sup: 1332, 1327, 1323, 1316
