Gold Spot Price eases to challenge the 1305 bar

•Gold moved slightly lower to challenge the 1305 (S1) bar as a support this time. The possibility for a higher low still exists and since the precious metal is trading above both the moving averages and above the prior downtrend line, I still see a positive picture. However, considering that the RSI hit its 70 level and moved lower, I would not rule out some further consolidation or further pullback before the bulls prevail again. On the weekly chart we can identify two consecutive hammer candles, increasing the possibilities for further advance.

•Support: 1305 (S1), 1280 (S2), 1268 (S3).
•Resistance: 1330 (R1), 1342 (R2), 1354 (R3)