- Gold continued with its struggle to sustain above $1550 supply zone.
- 100-hour SMA/ascending trend-line might continue to lend support.
Gold struggled to capitalize on the overnight positive move to fresh multi-year tops and edged lower through the early European session on Thursday, falling to daily lows around the $1540 region in the last hour.
Improving global risk sentiment – supported by positive trade-related headlines – dented demand for traditional safe-haven assets and seemed to be one of the key factors exerting pressure on the precious metal.
Despite the pullback, the commodity has managed to hold its neck above 100-hour SMA – coinciding with a two-day-old trading range resistance breakpoint – which should now act as a key pivotal point for traders.
This is closely followed by a support marked by a short-term ascending trend-line – around the $1526-25 region, which if broken might prompt some technical selling and set the stage for a near-term corrective slide.
A sustained break below the $1520-19 area (weekly lows) will reaffirm the negative bias and accelerate the slide towards challenging the key $1500 psychological mark en-route the next major support near the $1491-90 region.
On the flip side, Gold needs to find acceptance beyond the $1550-52 region for a bullish revival and any further near-term appreciating move towards $1575-76 intermediate resistance ahead of the $1600 round figure mark.
Gold 1-hourly chart
-637032690099212951.png)
Share
