- The precious metal adds to its recent losses and drops to fresh three month lows.
- Slightly oversold conditions held investors from placing any aggressive bearish bets.
Gold remained depressed through the mid-European session on Tuesday and is currently placed near three-month lows, just above $1450 level. The mentioned region marks 38.2% Fibonacci level of the $1265-$1557 bullish move and should now act as a key pivotal point for short-term traders.
Given the recent break below a one-month-old trading range support, which coincided with 100-day SMA, the near-term set-up remains tilted in favour of bearish traders. However, slightly oversold conditions on the 4-hourly charts helped limit any deeper losses, at least for the time being.
Meanwhile, oscillators on the daily chart maintained their bearish bias and are still far from being in the oversold territory, supporting prospects for a further near-term depreciating move. Hence, any attempted recovery might still be seen as an opportunity to initiate fresh bearish positions.
Sustained weakness below a previous resistance, now turned support near the $1450 region seems to accelerate the fall further towards $1425 intermediate support before the commodity eventually slides to test 50% Fibo. level support near the $1412 area.
On the flip side, attempted recovery moves might now confront some fresh supply near the $1465-67 area and any subsequent strength is likely to remain capped near the confluence support breakpoint near the $1475 region.
Gold daily chart
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