Spot gold lost ground on Tuesday and fell through psychological $1800 support (after two rejections on May 16 and July 1) hitting new 2022 low in the biggest one-day loss since Jun 13.
Growing expectations on aggressive rate hikes in the near future, with the US Federal Reserve being particularly hawkish, due to the situation of soaring inflation that caused the domino-effect on the entire economy.
Rising uncertainty on signals that major economies are sliding into recession, fueled demand for US dollar and additionally pressure the yellow metal.
Fresh weakness adds to signals of a double-top ($2070/74) and pressure key monthly higher base at $1680 zone (also Fibo 38.2% of $1046/$2074 rally), loss of which would undermine a larger bullish structure on confirmation of a double-top pattern and reversal of the uptrend from $1046 (Dec 2015 low).
Negative daily techs and today’s massive bearish daily candle are expected to weigh heavily on near-term action, with $1800 level now acting as solid resistance.
Res: 1784; 1800; 1805; 1812
Sup: 1766; 1721; 1700; 1680
