Spot Gold extends weakness on Wednesday following previous day’s close in red and action in past two days being capped by thick daily cloud which weighs on near-term action.
Eventual firm break below daily cloud after several unsuccessful attempts and close below next pivot at $1277 ( Fibo 61.8% of $1260/$1306 upleg) were strong bearish signals for extension of bear-leg from $1306 high.
The yellow metal came under increased pressure amid speculations of more hawkish new Fed Chair, as candidate John Taylor is seen as most likely replacement for Janet Yellen.
Fresh weakness met next target at $1271 (Fibo 76.4%) and shows scope for stretch towards key supports at $1260 (06 Oct low) and $1258 (200SMA).
Today’s close below broken 100SMA ($1275) is needed to generate another bearish signal.
Broken daily cloud base marks key near-term resistance at $1281.
Res: 1275, 1277, 1281, 1283
Sup: 1271, 1266, 1260, 1258
