SPOT GOLD is recovering after suffering heavy losses on Monday
Spot Gold price is higher on Tuesday, recovering from low at $1274, posted after Monday’s fall which marks the biggest one-day loss since late September.
Fast bearish acceleration was triggered after repeated rejection at the base of thickening daily cloud, which marks strong obstacle.
Investors are looking for clearer signal about the US monetary policy in coming months, as markets are expecting one more rate hike by the end of the year.
Another important factor for Gold was comment of US President Trump who put North Korea on a list of stated sponsoring terrorism, which could result in stronger safe-haven buying.
Immediate risk is expected to remain shifted lower while recovery stays capped by converged 10/100SMA’s ($1280), while stronger recovery needs sustained break here to re-expose key barriers at $1290 (daily cloud base / 55SMA).
On the downside, cracked 55SMA still acts as valid support at $1277 and firm break here is needed to confirm negative near-term bias.
Res: 1280; 1284; 1290; 1296
Sup: 1277; 1274; 1270; 1263