Spot Gold remains in red on Thursday and hit one-week low at $1279, extending strong fall on Wednesday after data showed the US economy has regained traction. US Gross Domestic Product rose by 3.3% in Q3, showing economy expanding in the fastest pace in three years.
Another hit for gold price came from Fed chair Janet Yellen’s Congressional testimony, as Yellen pointed at expanding economy which would warrant continued interest rate increases.
The yellow metal is waiting for another set of releases from the US, which includes personal income and spending and personal consumption expenditures, to get more clues about likely trajectory of US monetary policy.
Technical studies are turning to bearish mode on daily chart after the price repeatedly failed to sustain break into daily cloud that kept widening cloud as solid resistance and continuing to weigh on gold’s price.
Today’s dip cracked support at $1281 (daily Kijun-sen) but firm break lower is needed to open pivot at $1277 (Fibo 61.8% of $1263/$1299).
Falling cloud base ($1288) is expected to cap upticks.
Res: 1286, 1288, 1290, 1296
Sup: 1281, 1279, 1277, 1274
