SPOT GOLD – risk of deeper pullback
Spot Gold remains in red on Tuesday and retests spike lows of past two days ($1314/13) left after repeated downside rejections.
The yellow metal is pressured by higher dollar and rising bets on further US interest rate hikes in 2018.
Fresh weakness today threatens of stronger reversal from new 3 ½ month high at $1326 which would extend towards rising 10SMA ($1307), Fibo 23.6% retracement of $1236/$1326 ascend at $1304 and psychological $1300 support.
Daily RSI and slow stochastic emerge from overbought territory and showing room for further downside extension which could stretch towards pivotal support at $1291 (Fibo 38.2%).
Underlying bulls need correction to validate uninterrupted uptrend from $1236 (12 Dec low) for further retracement of $1357/$1236 descend, keeping dip-buying as favored scenario.
Res: 1320; 1322; 1326; 1328
Sup: 1313; 1307; 1300; 1291