SPOT GOLD – correction to precede fresh bulls
Spot Gold prices eases on Monday, weighed by stronger dollar after weaker than expected US jobs data on Friday made no impact on expectations for further interest rate hikes this year.
Gold price could ease further on fresh negative sentiment, as corrective action is also signaled by daily indicators emerging from overbought zone.
Violation of last Friday’s spike low at $1313 will initial signal, with violation of pivots at $1305/03 (last Thursday’s low / Fibo 23.6% of $1236/$1326 rally / rising 10SMA) needed to generate stronger bearish signal.
Buying on correction remains favored scenario as steep uptrend from $1236 showed signs of fatigue and needs to correct before larger bulls continue.
Extended dips should find ground at $1292 (Fibo 38.2% of $1236/$1326) to keep bulls intact and reduce risk of deeper correction which would sideline bulls.
Res: 1322; 1326; 1328; 1334
Sup: 1313; 1305; 1300; 1291