SPOT GOLD looks for direction signal on break out of $1313/26 range
Spot Gold holds in red in European session on Tuesday after extension of previous day’s recovery stalled at $1325 in early Asian trading. Fresh weakness pressures cracked support at $1317 (Fibo 61.8% of $1302/$1340 rally), firm break of which would generate fresh bearish signal for extension of bear-leg from $1340 (07 Mar high). Near-term price action is entrenched within $1313/26 range for the third straight day and requires direction signal on break of either side of the range. Repeated strong downside rejections in past two days suggest that downside attempts lack momentum for final break lower, while the upside was repeatedly capped by 55SMA and broken Fibo 38.2% level. Daily techs are bearishly aligned and keep negative near-term bias, however, require firmer signal for confirmation, which could be generated on today’s US CPI data.