SPOT GOLD – daily cloud continues to heavily weigh and limit upside attempts
Holiday-thinned conditions keep gold price within narrow range on Friday with action being repeatedly capped by thickening daily cloud (spanned between $1294 and $1308).
Cloud continues to heavily weigh on near-term action, despite bullish signals from dovish stance from several Fed officials regarding interest rates and bullishly aligned techs.
While cloud base continues to limit upside attempts, risk of fresh weakness is expected to remain in play.
Broken 55SMA ($1287) so far holds the downside and marks initial support, loss of which would generate bearish signal for extension towards pivots at $1283/80 (sideways-moving daily Tenkan-sen / Kijun-sen).
Bullish scenario needs firm break and close in the cloud to signal further upside.
Res: 1294; 1296; 1300; 1308
Sup: 1287; 1283; 1280; 1276