- Gold extended the previous session’s sharp intraday pullback from closer to multi-year tops and remained under some selling pressure through the mid-European session on Thursday.
- The commodity found some support near 200-day SMA – also nearing 50% Fibo. level of the $1382-$1436 weekly upswing, and might now act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on the hourly chart have been losing positive momentum but managed to maintain their bullish bias on 4-hourly/daily charts and thus, warrant some caution before placing any aggressive directional bets.
However, the fact that the yellow metal struggled to defend 50-hour SMA points to further intraday slide, though bearish traders are likely to wait for a breakthrough the mentioned confluence support near the $1410 region.
A follow-through weakness is likely to accelerate the slide further towards the $1404-03 intermediate support – 61.8% Fibo. level, before the commodity eventually drops to challenge the key $1400 psychological mark.
On the flip side, any up-move towards the $1420-22 region might now be seen as a selling opportunity amid the prevalent risk-on mood, which if cleared might negate any bearish bias and lift the metal back towards the $1438-40 supply zone.
Gold 1-hourly chart
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