SPOT GOLD at new 2-mth low as dollar rises on Fed’s hawkish stance
Spot Gold hit two-month low at $1306, on fresh bearish acceleration which cracked key near-term support at $1307 (08 Feb low).
The yellow metal, sensitive on changes of US interest rates, came under increased pressure after Fed’s new chief Jerome Powell, in his debut testimony, pointed at strong US economic outlook, indicating that the Fed could increase the pace of rate hikes this year and sending the greenback higher.
Violation of $13707 pivot is negative signal which requires confirmation on close blow support to complete failure swing pattern on daily chart and confirm double-top ($1366/61) for further weakness.
Bears now eye strong supports at $1301/00 (100SMA / daily cloud base / Fibo 50% of $1236/$1366 ascend), loss of which would expose next key supports at $1286 (200SMA / Fibo 61.8% retracement).
Today’s break below 55SMA and formation of double bear-cross (10/30 and 10/20SMA’s), along with fresh bearish momentum, increase bearish pressure and maintain negative sentiment.
Broken 55SMA now marks solid resistance at $1318, which is expected to keep the upside protected.
Res: 1307; 1313; 1318; 1324
Sup: 1300; 1294; 1286; 1279