Spot Gold is trading within narrow consolidation above fresh low at $1240 on Tuesday, but maintaining firm bearish tone.
Monday’s extension of bear-leg from $1299 (27 Nov lower top) entered weekly cloud and met target at $1240 (Fibo 76.4% of $1204/$1357 ascend), where temporary footstep was found.
Oversold daily studies suggest some corrective action but so far did not generate stronger bullish signal, as the yellow metal showed mild reaction on overall weaker dollar.
Bears see limited corrective moves before resuming lower. Break below $1240 handle would open weekly cloud base / weekly 200SMA ($1233) with stronger bearish acceleration not ruled out on firm break lower.
The yellow metal may stay in a quiet mode until FOMC verdict tomorrow, as Fed’s wording after interest rate decision is expected to be the key for gold’s short-term direction.
Stronger upside action sees minimum requirement on return to falling 10 SMA (currently at $1262) to sideline immediate downside risk, while extension above 200SMA (1267) would generate stronger bullish signal.
Res: 1246; 1254; 1260; 1263
Sup: 1240; 1235; 1233; 1229
