Spot gold edged higher in European trading on fresh uncertainty over Brexit talks and negative tones from US/China trade talks.
The yellow metal hit session high at $1485 on bounce from Tuesday’s two-week low at $1477, posted after daily drop of 1.2%.
Studies on daily chart remain bearishly aligned as momentum remains in the negative territory, stochastic heads south, MA’s and Tenkan/Kijun-sen are in bearish setup and negative signal was generated on Tuesday’s close below pivotal Fibo support at $1482 (61.8% of $1459/$1519).
Current action is so far seen as consolidation ahead of fresh weakness, with repeated close below $1482 to confirm bearish signal.
Sustained break below $1482 pivot would open way towards next strong support at $1470 (daily cloud base) and risk attack at $1459 (1 Oct spike low).
On the other side, stronger upticks, mainly driven by fundamentals, cannot be ruled out, with initial barrier at $1487 (5DMA) and key resistances at $1500 zone (cluster of daily MA’s), break of which is needed to neutralize bears.
Res: 1487, 1489, 1495, 1500
Sup: 1477, 1473, 1470, 1464
