Spot Gold is back to red on Friday and probes again below daily Ichimoku cloud base after strong recovery rally on Thursday and Friday’s attempts higher were capped by daily Tenkan-sen at $1291.
Fresh bears are testing cloud base ($1281) again after attempts in past two days dipped to $1276 but failed to close below cloud base which acted as strong support.
Sustained break below cloud base and next strong hurdles at $1277/75 (Fibo 61.8% of $1260/$1306 / 100SMA) would generate strong bearish signal for extension of bear-leg from $1306 towards next key supports at $1260/57 (06 Oct low / 200SMA).
Bearishly aligned daily techs and stronger dollar are supportive for further easing of yellow metal’s price.
Broken 20SMA offers initial resistance at $1285, with 10SMA ($1289) expected to cap upticks.
Res: 1285, 1289, 1291, 1297
Sup: 1277, 1275, 1271, 1266
