- Gold managed to attract some dip-buying near the $1722 support area.
- Bulls largely shrugged off a solid rebound in the global equity markets.
- The near-term technical set-up seems tilted in favour of bullish traders.
Gold attracted some dip-buying on Friday and edged higher for the fourth session on the previous five. The uptick reinforced the $1722-20 pivotal support and assisted the commodity to reverse the previous day’s modest losses. The intraday positive move seemed rather unaffected by a solid rebound in the global equity markets. Bulls even shrugged off a strong pickup in the US Treasury bond yields, which tend to undermine the non-yielding yellow metal.
Meanwhile, bullish oscillators on hourly/daily charts remained supportive of the momentum and support prospects for additional gains. A subsequent move beyond the $1745 area (overnight swing high) will add credence to the constructive outlook. Above the mentioned level, the metal seems all set to surpass an intermediate resistance near the $1750 horizontal level before bulls eventually aim back towards retesting multi-year tops, around the $1765 region.
On the flip side, the $1728 level seems to act as immediate support and any subsequent fall towards the $1722-20 region might still be seen as a buying opportunity. Failure to defend the mentioned support might now be seen as a fresh trigger for bearish traders. The commodity might then turn vulnerable to accelerate the fall towards challenging the $1700 round-figure mark with some intermediate support near the $1708 horizontal level.
Gold 4-hourly chart
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Technical levels to watch
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