Spot Gold stands at the back foot on Wednesday and hit new one-month low at $1285 in extension of Tuesday’s strong fall (the biggest one-day loss since July 3), which generated negative signal on formation of Bearish Engulfing pattern.
Today’s weakness cracked rising 55SMA support at $1287 and eyes next targets at $1281 (50% retracement of $1204/$1357 ascend) and more significant daily cloud top at $1276.
Bearish techs show further room at the downside for extension of bear-leg from $1357 (08 Sep peak).
Session high at $1296 and psychological $1300 barrier marks initial resistances, with extended upticks expected stay capped under falling 10SMA at $1304.
Res: 1296; 1300; 1304; 1310
Sup: 1285; 1281; 1276; 1270
