Spot Gold regained traction on Monday and bounced to $1289 in Europe after opening with dap-lower and hit session low at $1280, where ascending 10SMA contained.
Gold price was significantly lower after Friday’s strong rally that cracked psychological $1300 barrier and subsequent quick pullback.
Overall bulls remain intact, however risk of further easing towards $1272 (bull-channel support / rising 20SMA) exists, as failure to close above dented key barriers at $1292/96 and Friday’s red daily candle with very long upper shadow weigh on near-term action.
Existing downside risk will be sidelined on regain of $1292 (11 Aug high) while extension above $1296 (06 June high) is needed to open way for retest of $1300 barrier and bullish resumption on firm break higher.
Res: 1289, 1292, 1296, 1300
Sup: 1280, 1276, 1272, 1267
