Spot Gold extends weakness on Tuesday to $1287, following Monday’s upside rejection at $1305 and close in red.
Today’s fresh bearish extension signal pullback, with slow stochastic reversed from overbought territory and showing a plenty of room at the downside.
The yellow metal was hit by stronger dollar and reduced safe-haven buying.
Gold price bears dented pivotal supports at $1288/87 zone (Fibo 38.2% of $1260/$1306 upleg / 20SMA) break of which would generate fresh bearish signal and risk extension towards supports at $1283 and $1277 (Fibo 50% and 61.8% retracement of $1260/$1306 respectively).
Broken 55SMA ($1296) marks solid resistance and caps today’s action.
Res: 1296, 1300, 1305, 1309
Sup: 1287, 1283, 1277, 1275
