- Gold stages a modest bounce from two-week lows but lacks follow-through.
- A retest of monthly lows, around the $1445 region, remains a distinct possibility.
Gold seemed struggling to capitalize on its intraday positive move and is currently placed in the neutral territory, around the $1455 region, well within the striking distance of two-week lows set earlier this Tuesday.
Given that the commodity has been trending lower along a descending trend-channel over the past two months or so, the near-term set-up remains tilted in favour of bearish traders amid renewed US-China trade optimism.
Last week’s failure near the 100-day SMA support-turned-resistance, coupled with bearish technical indicators on the daily chart further support prospects for an extension of the recent downward trajectory.
Hence, some follow-through weakness, back towards challenging monthly swing lows near the $1445 region ahead of the descending trend-channel support near the $1440 region, remains a distinct possibility.
On the flip side, attempted recovery might now confront some fresh supply near the $1466-68 zone and any subsequent move up seems more likely to remain capped near the $1479-80 region (ahead of 100-DMA).
Gold daily chart
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