Spot Gold price eased on Tuesday from fresh four week high at $1270 and returned into thick daily cloud, hitting session low at $1261. Bullish technicals are reinforced by positive sentiment on renewed safe-haven demand that supports the yellow metal’s price. In addition, repeated close above $1264 Fibo 61.8% pivot was bullish signal for extension towards next target at $1276. Current pullback could be seen as corrective action which should be ideally contained by rising 10SMA/Tenkan-sen at $1258. However, extended pullback cannot be ruled out as slow stochastic is back into overbought territory and formed bearish divergence that may signal further easing. Top of thick 4-hr cloud at $1255 and last Friday’s low at $1253 are next good supports which should keep downticks limited to avert risk of retesting key near-term support at $1245 (daily cloud base).
Res: 1267, 1270, 1276, 1280
Sup: 1261, 1258, 1255, 1253
