Spot Gold accelerated sharply lower on Wednesday, pressed by stronger dollar after Fed and met target at $1234 (Fibo 61.8% of $1197/$1295 rally/daily cloud top).
The price broke few strong supports en- route (200SMA at $1251, 55SMA at $1247 and trendline support at $1240) that weakened the structure.
Fresh weakness on Thursday probed briefly below $1234 pivot, with broken bull-trendline now acting as resistance and capping today’s action.
Fresh bearish signal would be generated on close below $1234 and $1229 (Fibo 38.2% of $1122/$1295) for extension towards next targets at $1222/20 ( daily cloud base / Fibo 76.4% / 100SMA), possibly to $1209 (50% of $1122/$1295).
Oversold slow stochastic on daily chart signals correction but no firmer signal seen so far.
Broken 200SMA is expected to cap extended corrective upticks.
Res: 1241, 1247, 1251, 1256
Sup: 1233, 1229, 1222, 1220
