Gold: Bears eye $1302 below channel support

Gold is pressured by strength in the dollar following a flight to the havens at the start of the week which took the pirce through key techncial levels to the upside for the highest score since late February. 

Despite the recent releases of poor US data, it would appear that the greenback is still able to climb although various geopolitical risks, including Brexit, have been favourable to the precious metal. 

"The market's conviction that next move at the Fed will be a cut continues to grow, with interest rate markets now pricing a nearly 75% probability of a cut before the year's end. While a strong dollar has thus far been an impediment to higher gold prices, we expect that the yellow metal will head towards our target of $1,360/oz sooner than anticipated,"

analysts at TD Securities argued. 

Gold levels

While below 1316/17, support is loated at the rising trend line support of the channel, a touch below the 50% Fibo. So long as the channel holds, bulls can target a break towards 1323 ahead of 1332 guards the 2019 highs as being the 19th Feb high of 1345.19. On the downside, 1302 is now key. A break here will jeopardise the neutral/bullish Ichimoku Cloud and leave the outlook neutral with a bearish bias.  1298 and 1290 guard a run to 1280 as a keen target ahead of 1275 which remains the line in the sand to the downside. A break below here will put the attention back to the towards to 1250, a key confluence area made up of Fibos and prior support and resistance.