SPOT GOLD – limited correction before bears resume
Spot Gold price bounced on Monday after downside attempts stalled ahead of last Friday’s low at $1265.
Strong supports lay at $1260/$1263 zone (06 Oct low / 200SMA / 27 Oct n/t congestion low) which keep the downside protected for now, however, overall bearish structure keeps the downside at risk.
The notion is supported by bearish sentiment as recent strong economic data from the US maintain expectations for Fed’s rate hike in December, which keeps the yellow metal price under pressure.
Recovery rally faces solid barriers from daily Tenkan-sen ($1273) and Kijun-sen ($1283) which should ideally limit upside attempts.
However, daily cloud is twisting this week and may attract for further recovery.
Extended corrective rallies are expected to stay under psychological $1300 barrier to keep bears in play, for renewed attempt at $1260 pivot, loss of which would trigger fresh bearish extension towards $1240 (50% of $1122/$1357 rally).
Res: 1273; 1280; 1283; 1289
Sup: 1265; 1263; 1260; 1251