Search ForexCrunch
  • Erases the previous session’s modest uptick amid fading safe-haven demand.
  • Bearish traders might aim towards testing monthly lows, around 1445 level.

Gold failed to capitalize on its early uptick to over one-week tops and once again started retreating from the $1475 resistance zone. Currently hovering around the $1466 region, the commodity has now erased all of the previous session’s modest intraday gains.
The mentioned barrier represents a previous horizontal support breakpoint and the lower end of a one-month-old trading range, which is closely followed by 100-day SMA and should act as a key pivotal point for the commodity’s next leg of a directional move.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again started gaining negative momentum on hourly charts, supporting prospects for a further near-term depreciating move amid fading safe-haven demand.
Hence, some follow-through weakness back towards $1455 horizontal support en-route last week’s swing lows, around the $1445 region, now looks a distinct possibility. The latter coincides with 38.2% Fibonacci level of the $1265-$1557 bullish move, which if broken might pave the way for a further depreciating move.
Below the mentioned support, the commodity is likely to accelerate the slide further towards $1432-30 intermediate support before eventually dropping to the next major support near the $1414-12 region – 50% Fibo. level.
On the flip side, the $1475 region might continue to act as an immediate strong resistance, which if cleared decisively might trigger a bout of short-covering and lift the commodity back towards the $1490 region ahead of the key $1500 psychological mark.

Gold daily chart