Gold price moved higher on Wednesday after falling sharply the previous day (gold fell nearly 1.7% on Tuesday), but recovery was so far limited and stayed below psychological $1300 barrier.
The yellow metal price was heavily sold as rallying dollar and US bond yields prompted investors out of gold positions.
Break and close below 2000SMA ($1306) previous low ($1301) was strong bearish signal and fresh extension lower dipped so far to $1288 (new 5 ½ month low).
Pivotal support at $1285 (Fibo 61.8% of $1236/$1366 ascend / weekly cloud top) is under pressure and break here would generate another negative signal.
Fresh bearish acceleration from $1325 (11 May lower top) marks the third wave of five-wave sequence from $1355, which could travel to its FE 100% at $1271.
Oversold slow stochastic suggests the price may hold in extended consolidation before final break through $1285 support, with broken 200SMA expected to cap extended upticks and maintain bearish bias.
Res: 1296, 1301, 1306, 1310
Sup: 1288, 1285, 1277, 1271
