- Extends the recent corrective slide from multi-year tops and slipped further below $1500 mark.
- Slightly oversold conditions on the 1-hourly chart helped limit the downside, bounce off lows.
- Any attempted recovery might still be seen as an opportunity to initiate fresh bearish positions.
Gold added to its recent losses and remained under some selling pressure for the fourth consecutive session on Tuesday, albeit has managed to recover a major part of its early slide to four-week lows. Fading safe-haven demand – amid the latest optimism over the resumption of US-China trade talks – seemed to be one of the key factors fueling the ongoing corrective slide from multi-year tops.
Given the overnight decisive breakthrough a four-week-old ascending trend-line support, the near-term bias seems to have shifted in favour of bearish traders and support prospects for a further decline. Meanwhile, technical indicators on the 4-hourly chart maintained their bearish bias and have just started gaining downward momentum on the daily chart, adding credence to the negative outlook.
However, slightly oversold conditions on the 1-hourly chart held investors from placing any aggressive bearish bets and helped limit the downside amid a slight deterioration in the global risk sentiment. However, any further recovery seems more likely to confront some fresh supply near the key $1500 psychological mark and cap the upside near the trend-line support breakpoint – around the $1504-05 region.
On the downside, the commodity seems poised to aim towards testing mid-August volatility swing lows support near the $1478-77 region, which coincides with another ascending trend-line extending from late-May. A convincing break below the mentioned confluence support might negate any near-term bullish bias and pave the way for a further near-term depreciating move towards the $1450-48 support area.
Gold daily chart
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