SPOT GOLD – bears may extend towards $1317 support while 10SMA caps
Spot Gold remains in red on Tuesday and met its target and strong support at $1323 (Fibo 38.2% of $1267/$1357 upleg), where temporary footstep was found.
Near-term action is in narrow consolidation above $1323 handle and holds below broken 10SMA ($1331), maintaining bearish near-term bias.
Relief from North Korea / Hurricane Irma’s impact concerns reduced safe-haven demand and keep gold price under pressure.
Bears may extend towards next pivotal support at $1317 (Fibo 38.2% of $1251/$1357 upleg) loss of which would expose another strong support at $1304 (daily Kijun-sen).
Scenario is expected to remain in play while the price holds below 10SMA, otherwise, strong downside pressure would ease on break and close above 10 SMA.
Res: 1329; 1331; 1336; 1340
Sup: 1323; 1317; 1312; 1304