Spot Gold is holding firmly below thick daily cloud base after being unable to clearly break support ($1281) in several attempts last week. Gold price hit new two-week low at $1274 on Monday after breaking below next pivotal supports at $1277 (Fibo 61.8% of $1260/$1306 upleg) and $1275 (100SMA).

Close below here is needed for fresh bearish signal after break below cloud base, to extend bear-leg from $1306.

Immediate support lies at $1271 (Fibo 76.4%) but bears may extend towards key point at $1260 (06 Oct low) as the yellow metal remains under pressure by strengthening US dollar.

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Thick daily cloud (spanned between $1281 and $1321) weighs strongly and cloud base is expected to limit upside action.

Res: 1277, 1281, 1283, 1288
Sup: 1274, 1271, 1266, 1260


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