Spot Gold fell 1.3% on Monday on renewed risk appetite as traders increased dollar positions on strong hopes on further US interest rate rises. Fall of Chinese stocks and yuan, as well extension of negative tone into European and US stock markets, boosted the greenback. Gold price returned below thick daily cloud after trading the whole last week within the cloud, generating negative signal. Fresh weakness after repeated failures to regain key barrier at $1214 (28 Aug recovery high) dipped below the mid-point of $1160/$1214 recovery leg, turning near-term focus towards key support at $1180 (Fibo 61.8% of $1160/$1214/28 Sep low), loss of which would risk full retracement of $1160/$1214 recovery). Daily Ichimoku studies turned to full bearish setup, with rising bearish momentum, keeping near-term outlook negative. Broken daily cloud base ($1196) is expected to cap upticks and maintain bearish bias, established after today’s fall.
Res: 1194; 1196; 1201; 1208
Sup: 1184; 1180; 1172; 1160
