Gold continues to head south on rising dollar
Spot gold hits the lowest in almost one month on Monday, in extension of last week’s 3.05% fall, following a double weekly rejection at $1800 round-figure barrier.
The yellow metal remains under increased pressure on robust dollar, inflated by expectations for more aggressive rate hike and risk aversion.
Bears retraced over 50% of $1680/$1807 rally that further weakens near-term structure, as daily studies are negative (MA’s turned to bearish setup and 14-d momentum indicator slid into negative territory.
The price action is additionally pressured by falling daily cloud and eyes test of pivotal Fibo support at $1729 (61.8% of $1680/$1807) break of which would unmask targets at $1710/00 (Fibo 76.4% / psychological).
Upticks on oversold conditions should stay below strong barriers at $1761/69 (daily cloud base / daily Tenkan-sen respectively) to keep bears intact.
Res: 1744; 1750; 1761; 1769
Sup: 1729; 1710; 1700; 1680