Spot Gold Price – Bears probe below daily cloud: Fed speakers in focus today

London (Oct 18)  Spot Gold extends weakness into third straight day and probes below strong support at $1281 (daily cloud base). Long bearish daily candles of past two days weigh, with Tuesday's fall marking the biggest one-day loss in three weeks. Gold remains under pressure on stronger dollar and speculations about successor of Janet Yellen as chair person of US Federal Reserve, as President Trump favors more hawkish person and John Taylor is currently a front-runner.

Daily Ichimoku studies are turning into full bearish setup on daily chart and favor further downside. Firm break below daily cloud and violation of another pivotal support at $1277 (Fibo 61.8% of $1260/$1306 upleg) will be strong bearish signal for extension towards $1271 (Fibo 76.4%). Speeches from several FOMC members will be in focus today for further signal of rate hike in December, which is widely expected as the latest data show around 90% chance of FOMC action in December.

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