- Gold built on the overnight bullish breakout momentum and climbed to fresh multi-year tops – around the $1475 region earlier this Tuesday, albeit witnessed some intraday profit-taking thereafter.
- The fact that the precious metal has managed to hold its neck above the resistance breakpoint – now turned support near the $1448-50 region, the set-up remains in favour of bullish traders.
Moreover, technical indicators on the daily chart maintained their positive bias and further reinforce the constructive set-up, albeit overbought conditions on hourly charts seemed to be the only factor holding investors from placing any aggressive bullish bets.
Having said that, a follow-through buying beyond the daily swing high, leading to subsequent strength above $1478-80 intermediate resistance now seems to set the stage for an extension of the recent appreciating move further towards reclaiming the key $1500 psychological mark for the first time since April 2013.
On the flip side, the mentioned resistance-turned-support might continue to protect the immediate downside, which if broken might prompt some long-unwinding trade and accelerate the corrective slide further towards $1440 horizontal support en-route the $1430 region.
Failure to defend the mentioned support levels might turn the commodity vulnerable to head back towards challenging the key $1400 psychological mark with some intermediate support near the $1411-10 region.
Gold daily chart
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