Spot Gold price eased from recovery high at $1235 on Thursday, failing to extend strong advance of previous day, as positive tone from US/EU trade talks lowered tensions about trade war. Gold dipped despite weaker dollar as safe-haven demand eased on constructive trade talks.
The price returned below falling 10SMA, which was repeatedly attacked but without clear break, generating initial negative signal that will be confirmed on daily close below 10SMA.
Weak momentum studies and falling daily MA’s in full bearish configuration maintain pressure, with close below Wednesday’s low at $1223 to signal double-top ($1235) and open way for further easing. Close below $1218 (Tuesday’s spike low) would confirm reversal and risk return towards $1211 (19 July low).
On the other side, bullish scenario requires close above 10SMA to keep bullish near-term bias for recovery extension towards falling 20SMA ($1240).
Res: 1235, 1238, 1240, 1249
Sup: 1226, 1223, 1218, 1215
