Technical Outlook GOLD 16.08.2017

Technical Outlook GOLD 16.08.2017

Spot gold – bears found footstep at $1267, awaiting FOMC minutes for fresh signal

Spot Gold bounced to $1274 after repeated rejection at strong support at $1267 (Tuesday’s low / Fibo 61.8% of $1251/$1292 upleg, reinforced), as strong fall in past two days entered consolidative mode.
Fresh strength of dollar and reduced safe-haven demand put the yellow metal under pressure. Long bearish candles of past two days weigh for further weakness which could be triggered by firm break below $1267 pivot.
Markets are awaiting release of FOMC last meeting minutes which could send interest rate sensitive gold further down on hawkish comments that mean clearer signals about reducing a massive portfolio as well as another rate hike in 2017.
Such scenario could send gold price towards next supports at $1258 (Fibo 38.2% of $1204/$1292 rally) then $1254 (converged 55/100 SMA’s) and $1251 (08 Aug trough).
Alternatively, stronger upside action could be expected in case of more dovish minutes.

Res: 1274; 1276; 1282; 1285
Sup: 1270; 1267; 1261; 1258