SPOT GOLD – repeated failure at daily cloud base but sentiment remains positive
Spot Gold price eased below daily cloud base ($1290) which was cracked on Wednesday’s rally, boosted by dovish stance from Fed’s policymakers.
Base of thickening daily cloud proves to be very strong barrier as several attempts to clearly break above in recent sessions failed.
However, gold is expected to maintain bullish sentiment as Fed minutes signaled that the US central bank might not be aggressive in further policy tightening as previously expected.
Extended dips under the cloud are expected to find support above $1283 (daily Tenkan-sen) to keep intact bullish structure for eventual firm break into daily cloud and extension towards $1296/$1300 targets (17 Nov high / psychological barrier.
Conversely, bearish extension below $1283 would signal another upside rejection and shift near-term focus lower.
Res: 1290; 1294; 1296; 1300
Sup: 1287; 1283; 1280; 1276