- Gold’s pullback from session highs looks to have legs.
- The hourly chart suggests the recovery from Friday’s low has ended.
Gold has pulled back to $1,594 per Oz, having hit a session high of $1,606 at 01:25 GMT.
The pullback in the safe-haven metal could be associated with the risk recovery in the equity markets and could be extended further, as bearish signs have emerged on the hourly (1H) chart.
To start with the 50-hour and 200-hour averages have produced a bearish crossover. The previous hourly candle took shape of an inverted bearish hammer. That candle suggests the bounce from Friday’s low of $1,563 has ended.
The metal is also looking heavy on the daily and weekly charts. For instance, the 5- and 10-day averages have produced a bear cross and the metal created a big bearish outside candle last week, signaling buyer exhaustion.
So, the 50-day average support at $1,567 could come into play on Monday. The bearish case would weaken if prices find acceptance above $1,606 (the high of the 1H hammer candle).
Hourly chart
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Trend: Bearish
Technical levels
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