Search ForexCrunch
  • Gold stages a goodish bounce from over two-week-old ascending trend-line.
  • The set-up supports prospects for a move towards retesting weekly tops.

Gold caught some fresh bids near a support marked by over two-week-old ascending trend-line and staged a goodish intraday bounce from weekly lows set earlier this Thursday.

The precious metal has now recovered a part of the previous session’s negative move, with bulls now aiming for a move back towards reclaiming the $1700 round-figure mark.

The uptick was supported by the fact that oscillators on the daily chart maintained their positive bias and have again started gaining some traction on the 1-hourly chart.

However, the prevalent risk-on mood dented the commodity’s perceived safe-haven status and for now, seems to have capped any further appreciating move near 100-hour SMA.

Hence, it will be prudent to wait for a sustained strength beyond the $1700 level, which if cleared will set the stage for a move towards weekly tops, around the $1714 region.

Meanwhile, the mentioned trend-line, around the $1682-81 region, might continue to protect the immediate downside and should act as a key pivotal point for short-term traders.

A convincing break through will negate the bullish outlook and prompt some technical selling, which might accelerate the slide further towards the $1670 horizontal support.

Gold 1-hourly chart

fxsoriginal

Techical levels to watch