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  • Gold regained positive traction on Thursday and reversed the previous day’s negative move.
  • The near-term technical set-up remains tilted in favour of bulls, albeit warrants some caution.

Following the previous day’s modest pullback, gold attracted some dip-buying on Thursday and jumped to fresh session tops, around the $1738 region in the last hour.

The uptick marked the fourth day of a positive move in the previous five and seemed unaffected by some the prevalent USD strength/recovery in the global risk sentiment.

Meanwhile, the recent positive move over the past two weeks or so has been along an ascending trend-channel formation, indicating a well-established bullish trend.

The set-up seems well in favour of bullish traders and support prospects for the extension of the recent strong positive momentum from YTD lows set on March 20.

However, technical indicators on hourly/daily charts have moved on the verge of breaking into overbought territory and warrant some caution for aggressive bullish traders.

Hence, it will be prudent to wait for some near-term consolidation, or a modest pullback before positioning for a move back towards multi-year tops, around the $1748 region.

Gold 4-hourly chart

fxsoriginal

Technical levels to watch