- Gold gained some positive traction for the second consecutive session on Tuesday.
- The uptick lacked any bullish conviction ahead of the first US presidential debate.
- Any further move up is more likely to fizzle out near the $1900 support breakpoint.
Gold built on the previous day’s goodish bounce from 100-day SMA and edged higher through the first half of the trading action on Tuesday. The overnight sustained move beyond 100-hour SMA was seen as a key trigger for bullish traders and pushed the commodity to multi-day tops.
The intraday uptick was supported by the fact that technical indicators on the 1-hourly chart have been gaining positive traction. The commodity, however, lacked any follow-through ahead of a pivotal debate between Republican President Donald Trump and Democratic rival Joe Biden.
Meanwhile, oscillators on the daily chart maintained their bearish bias and are yet to register any meaningful recovery. Hence, any subsequent move up seems more likely to meet with some fresh supply, instead fizzle out near the $1900 strong horizontal support breakpoint.
That said, a sustained move beyond might trigger a short-covering move and lift the XAU/USD back towards the $1924-25 congestion zone.
On the flip side, immediate support is pegged near the $1877-76 region, below which the commodity could accelerate the slide back to the $1862-60 area before eventually dropping towards the $1849-48 support region (100-day SMA). A convincing breakthrough the mentioned support levels will set the stage for a further near-term depreciating move towards the $1818-15 region.
Gold 1-hourly chart
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Technical levels to watch
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