Gold Price Analysis: Bounces off ascending trend-line/200-hour SMA confluence support

• A modest USD uptick prompted some selling around gold on Tuesday.
• Coronavirus jitters helped bulls to defend the $1772 confluence support.
• Mixed technical indicators on hourly/daily charts warrant some caution.

Gold witnessed a modest intraday pullback on Tuesday and eroded a major part of the previous day’s positive move back closer to multi-year tops, set last Wednesday.

A goodish pickup in the US dollar demand was seen as one of the key factors exerting some pressure on the dollar-denominated commodity, albeit concerns about rising coronavirus cases helped limit any deeper losses.

Bulls, so far, have managed to defend a key support marked by a one-month-old ascending trend-line. This is closely followed by 200-hour SMA, around the $1772 region, which if broken might prompt some technical selling.

The commodity might then accelerate the corrective slide back towards last week’s swing lows, around the $1758-57 region. Bears could eventually aim to test the next major support near the $1750-48 horizontal zone.

Bearish technical indicators on the 1-hourly charts support prospects for further decline. However, oscillators on 4-hourly/daily charts maintained their bullish bias and warrant some caution before placing fresh bearish bets.

On the flip side, the $1785-86 region might continue to act as an immediate resistance, above which the precious metal seems all set to surpass the key $1800 psychological mark and climb further to the $1815 region.

Gold 1-hourly chart

Technical levels to watch