Spot Gold – Bears take a breather but upside attempts were limited for now
|GOLD
Spot Gold price edged higher on Thursday on fresh safe-haven demand on political uncertainty over Catalonia. Bounce comes after repeated failure to clearly break below daily cloud base and close below $1277 pivot (Fibo 61.8% of $1260/$1306 upleg). Near-term bears off $1306 high were repeatedly rejected $1276 as downside remains reinforced by 100SMA at $1275. Recovery was so far capped by 10SMA which offers solid resistance at $1288 and could be seen as a breather for bears from $1306, before resuming. Spot gold is focusing developments over expectations that Fed will raise rates in December, as well as replacement for Fed chief Janet Yellen whose term expires in February. President Trump's comment of favoring more hawkish person to head the US central bank was seen as negative for the yellow metal, which could ease further towards $1260/50 zone on such scenario. On the other side, near-term focus is on situation in Spain and further deterioration of political crisis would spark fresh safe-haven demand and push gold price higher. Break above $1288 would expose next significant barriers at $$1295 and $1300.
Res: 1288; 1291; 1295; 1300
Sup: 1281; 1277; 1275; 1271
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