- Having stalled its post-NFP slide near 100-period SMA on the 4-hourly chart, Gold regained some traction on the first day of a new trading week.
- The mentioned region coincides with a short-term ascending trend-line support and should now act as a key pivotal point for short-term bearish traders.
The intraday uptick failed to lift the commodity back above 50-period SMA on the said chart, clearly suggesting the lack of any strong follow-through buying interest amid tempered expectations for aggressive Fed rate cuts.
Meanwhile, technical indicators have been gaining negative traction on hourly charts but maintained their bullish bias on the daily chart, warranting some caution before placing any aggressive bets for a move in either direction.
Hence, it would be prudent to wait for a sustained break below the said confluence support, currently near the $1390 region, before positioning for any further depreciating move back towards the last week’s swing low, around the $1382-81 area.
On the flip side, a strong follow-through buying beyond $1410 level might now set the stage for an extension of the positive momentum back towards multi-year tops – around the $1440 region, with some intermediate resistance near the $1423-27 zone.
Gold 4-hourly chart
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