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  • Gold failed to capitalize on its early uptick and started retreating from a resistance marked by the top end of a short-term ascending trend-channel formation on the 1-hourly chart.
  • Positive trade-related comments by the Chinese Commerce Ministry spokesman boosted global risk sentiment and undermined the precious metal’s perceived safe-haven demand.

The commodity has now retreated back closer to 50-hour SMA support, which has been attracting some dip-buying interest over the past three trading session. The said support now coincides with the lower end of the ascending channel and should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the 1-hourly chart have been losing positive momentum and support prospects for a further intraday pullback. However, oscillators on 4-hourly/daily charts maintained their bullish bias and warrant caution before positioning for an extension of the corrective slide.
A convincing breakthrough the mentioned confluence support might prompt some aggressive technical selling and accelerate the fall further towards the $1532-31 intermediate support, which could further get extended towards weekly lows support near the $1524 region amid fading safe-haven demand.
On the flip side, the top end of the trend-channel – currently near the $1551-52 region – might continue to act as an immediate resistance, above which the yellow metal seems all set to surpass the multi-year high level of $1555 and head towards testing its next resistance near the $1560 area.

Gold 1-hourly chart