- Gold reversed an early dip and turned higher for the third consecutive session on Tuesday, hitting three-day highs – around the $1430 region, in the last hour.
- The overnight sustained move beyond 200-hour SMA was seen as a key trigger for intraday bullish traders and attracted some dip-buying interest on Tuesday.
With technical indicators on hourly charts again gaining positive traction and maintaining their bullish bias on the daily chart, a follow-through buying has the potential to provide an additional lift to the precious metal.
Sustained strength beyond last week’s swing high resistance near the $1433-34 region will reinforce the constructive outlook and set the stage for a move back towards $1445 horizontal resistance en-route multi-year tops.
Alternatively, failure near the current resistance zone, leading to a subsequent weakness below intraday lows – around the $1422 area, might negate any bullish bias and accelerate the slide back towards $1413 support zone.
A follow-through selling might turn the commodity vulnerable to head towards challenging the key $1400 psychological mark before eventually dropping to its next support near the $1393 zone ahead of the $1384 region.
Gold 1-hourly chart
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