Spot Gold continues to move lower on stronger dollar, trading in red for the third straight day. Fresh weakness commenced after strong upside rejection at $1361 on Friday and extended to one-week low at $1336 on Tuesday, where daily Kijun-sen offered temporary footstep. Near-term bears face strong headwinds from $1336 (daily Kijun-sen)/$1334 (daily Tenkan-sen/10SMA) support zone, loss of which would generate another bearish signal and risk weakness towards $1328 (Fibo 61.8% of $1307/$1361 upleg). Stronger greenback keeps reduced demand for safe-haven gold which could keep the price under increased pressure. Close below $1340 (cracked Fibo 38.2% of $1307/$1361) today is needed for bearish signal to maintain pressure on gold price. Failure to clearly break $1340 would ease immediate bearish pressure but the downside is expected to remain at risk while the price stays below pivotal $1350 resistance.
Res: 1344; 1348; 1350; 1352
Sup: 1336; 1334; 1328; 1320
/$1334 (daily Tenkan-sen/10SMA) support zone, loss of which would generate another bearish signal and risk weakness towards $1328 (Fibo 61.8% of $1307/$1361 upleg). Stronger greenback keeps reduced demand for safe-haven gold which could keep the price under increased pressure. Close below $1340 (cracked Fibo 38.2% of $1307/$1361) today is needed for bearish signal to maintain pressure on gold price. Failure to clearly break $1340 would ease immediate bearish pressure but the downside is expected to remain at risk while the price stays below pivotal $1350 resistance. ){kind=link}