- Gold edged lower through the mid-European session on Monday and slipped below the key $1500 psychological mark to hit multi-day lows in the last hour.
- Sustained weakness below 200-hour SMA – coinciding with 23.6% Fibo. level of the $1400-$1535 upsurge – was seen as a key trigger for intraday bearish traders.
Meanwhile, technical indicators have been gaining negative traction on hourly charts and support prospects for an extension of the corrective slide back towards testing last week’s swing lows – around the $1483-81 region – nearing 38.2% Fibo. level.
However, oscillators on the daily chart maintained their bullish bias and might continue to attract some dip-buying interest, which might help limit further downside ahead of Wednesday’s important release of the latest FOMC policy meeting minutes.
Failure to defend the mentioned support might prompt some follow-through technical selling and accelerate the slide further towards $1475 intermediate support en-route 50$ Fibo. level – around the $1467-65 region amid fading safe-haven demand.
On the flip side, the $1500-10 region (23.6% Fibo. level and 100-hour SMA) now seems to act as an immediate resistance, which if cleared might accelerate the up-move towards $1522 intermediate resistance before the commodity aims back towards multi-year tops.
Gold 1-hourly chart
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