Spot Gold moved higher in European session and retested session high at $1297, posted in early Asian trading on Monday supported by softer dollar.
The yellow metal was down around $16 in past two days, with stronger acceleration lower seen on Friday on strong US jobs data which added to strong expectations for Fed rate hike this month.
On the other side, uncertainty about trade war exists but so far without stronger safe-haven buying, which keeps gold price at the back foot on Monday.
Recovery from new low at $1289 (01 June) following failure to close below cracked Fibo support at $1291 (Fibo 61.8% of $1282/$1307) on Friday is supported by growing momentum and may extend further.
On the other side, negative setup of daily MA’s suggests that upside attempts would be limited under 10SMA ($1297) to keep negative outlook after multiple rejections at 200SMA ($1307) in play.
Bears need confirmation on close below Fibo 61.8% ($1291) to accelerate through $1288 (Fibo 76.4) for retest of key near-term support at $1282 (21 May low).
Alternatively, bears could be sidelined on break and close above 10SMA, which would open way for further retracement of $1307/$1289 bear-leg.
Res: 1295, 1297, 1300, 1305
Sup: 1291, 1288, 1285, 1282
