SPOT GOLD eases on stronger dollar; limited downside expected
Spot Gold stands at the back foot on Wednesday and keeps near-term focus at Tuesday’s spike low at $1331, after upside attempts in Asian session were rejected just under new four-month high at $1344.
Near-term bias is turning in negative mode as the yellow metal comes under pressure on moderately stronger dollar, with fresh bearish signals coming from overbought conditions on daily chart.
However, corrective action is expected to be shallow and likely to be contained by ascending 10SMA (currently at $1326) before underlying bulls signal continuation of steep uptrend from $1236 (12 Dec low) for final push towards target and key med-term barrier at $1357 (08 Sep peak).
Alternatively, loss of 10SMA handle would signal deeper pullback and risk extension towards key near-term support at $1308 (10 Jan trough).
Res: 1344; 1350; 1352; 1357;
Sup: 1333; 1331; 1326; 1322