SPOT GOLD remains at the back foot on stronger dollar and expectations for hawkish Fed
Spot Gold extended weakness from the previous week and hit new 2 ½ week low at $1307 on Monday.
The yellow metal remains under pressure on stronger dollar, as market are anticipating 0.25% increase on FOMC meeting this week but persisting concerns about the US politics may obstruct bulls.
Bearish techs keep near-term focus at the downside for test of key support zone between $1304 and $1301 (consisting of 100SMA / 01 Mar spike low and daily cloud base).
Hawkish Fed on Wednesday could spark fresh bearish acceleration through $1304/01 pivots, which could extend towards $1286 (Fibo 61.8% of $1236/$1366 rally).
Meanwhile, limited recovery could be expected as a cluster of daily MA’s between $1321 and $1329 weighs heavily and is expected to cap stronger upticks.
Res: 1314; 1318; 1321; 1323
Sup: 1307; 1304; 1301; 1293