Spot Gold bounced on Monday after strong fall on Friday, rallying from dangerous territory at $1273 (Friday’s low / Fibo 61.8% of $1263/$1288 upleg.
The yellow metal is focusing on key events scheduled this week: US inflation and retail sales and speeches from top Fed officials which are expected to give more signals about US monetary policy ahead FOMC policy meeting in December.
Gold is sensitive on changes in US interest rates and looks more clues about the likely trajectory of the US monetary policy, as markets widely expect another rate hike by the end of the year.
Daily techs are bearishly aligned, but today’s recovery which attempts above converged 10 / 20 / 100SMA’s would ease prevailing downside risk on sustained break higher.
Lift above $1280 is needed to re-expose pivotal barriers at $1288/90 (Friday’s high / Fibo 61.8% of $1306/$1263 downleg).
On the other side, stronger bearish signal could be expected on repeated violation of $1273 pivot, loss of which will be bearish.
Res: 1280, 1284, 1290, 1296
Sup: 1277, 1273, 1266, 1263
