- Retreats farther from the recent trading range resistance, retested on Friday.
- Sustained weakness below 50-DMA would pave the way for a further downfall.
Gold edged lower for the second straight session on Tuesday and retreated farther from a resistance marked by the top end of a one-month-old trading range, retested last week.
The prevalent risk-on mood, amid renewed optimism over a possible US-China trade deal, was seen as one of the key factors weighing on the precious metal’s safe-haven demand.
Currently hovering around 50-day SMA pivotal point, any subsequent slide below the key $1500 psychological mark is likely to get extended towards the $1491 support area.
The downward momentum could further get extended towards the $1483 intermediate support en-route the lower end of the mentioned trading range, around the $1475-74 region.
Meanwhile, technical indicators on hourly charts have been gaining negative traction and support prospects for a further near-term downfall amid fading safe-haven demand.
However, oscillators on the daily chart have managed to hold in the positive territory and warrant some caution before placing any aggressive near-term bearish bets.
On the other hand, bulls are likely to wait for a sustained breakthrough the recent trading range resistance, around the $1520 region, before positioning for any meaningful upside.
Gold daily chart
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