Home Gold technical analysis: Stage seems set for a move beyond $1500 mark amid global flight to safety
FXStreet News

Gold technical analysis: Stage seems set for a move beyond $1500 mark amid global flight to safety

  • 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

fxsoriginal

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.