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  • Remains well bid for the second straight session amid reviving safe-haven demand.
  • Intraday move beyond $1486-88 confluence barrier was seen as a key trigger for bulls.

Gold gained some follow-through positive traction for the second consecutive session on Wednesday and built on the overnight goodish intraday bounce from near two-month lows. Reviving safe-haven demand, amid growing concerns about slowing global economic growth, turned out to be one of the key factors driving the precious metal higher on Wednesday.
 
A sustained move beyond the $1486-88 confluence region – comprising of 100-hour SMA and 38.2% Fibonacci level of the $1535-$1455 recent slide – was seen as a key trigger for intraday bullish traders. The uptick was further supported by a modest USD pullback, which tends to underpin demand for dollar-denominated commodities, including Gold.
 
Moreover, technical indicators on the 4-hourly chart have again started gaining positive traction and recovered from the bearish territory on the daily chart. Adding to this, a subsequent move beyond 50% Fibonacci level now sets the stage for a further intraday appreciating move, possibly even beyond the key $1500 psychological mark.
 
On the flip side, the overnight swing high – around the $1488 region (also marking the 38.2% Fibo. resistance breakpoint) – now seems to protect the immediate downside, which if broken might negate the constructive outlook and turn the commodity vulnerable to resume its recent corrective slide from multi-year tops set in early-September.

Gold 1-hourly chart

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