SPOT GOLD – bears to resume after a breather; thick hourly cloud weighs heavily
Spot Gold fell to European session low at $1313, coming under renewed pressure after recovery attempts were repeatedly rejected at $1322 (Thu/Fri).
Yesterday’s long-tailed Doji signaled a breather in broader downtrend, with fresh easing keeping near-term bias with bears.
Weaker dollar on the second US government shutdown in 2018 showed little impact to the yellow metal which keeps focus at the downside.
However, bearish continuation requires stronger signal which will be generated on close below cracked $1316 pivot (Fibo 38.2% of $1236/$1366 ascend) and would expose 55SMA ($1302) and psychological $1300 support.
Near-term action is heavily pressured by thick falling hourly cloud (spanned between $1317 and $1327) which is expected to limit stronger recovery attempts.
Thin calendar from the US on Friday signals lack of fundamentals and suggests the yellow metal’s price would be driven by technicals.
Res: 1317; 1322; 1327; 1330
Sup: 1313; 1307; 1302; 1300