- Gold failed to capitalize on its early uptick to $1535 area and was seen consolidating in a narrow trading band around 38.2% Fibo. level of the $1494-$1555 latest upsurge.
- A follow-through weakness below 50-hour SMA might prompt some technical selling and accelerate the slide towards the overnight swing lows – around the $1525-24 region.
Meanwhile, technical indicators on the 1-hourly chart have been losing positive momentum but maintained their bullish bias on 4-hourly/daily charts, supporting prospects for some dip-buying interest at lower levels.
However, failure to defend the mentioned support – nearing 50% Fibo. level – might turn the precious metal vulnerable to extend the ongoing corrective slide further towards 61.8% Fibo. level support near the $1517 region.
On the flip side, the $1535 area now seems to have emerged as immediate support, above which the commodity seems all set to resume its bullish momentum and aim towards testing $1544 intermediate resistance en-route multi-year tops – around the $1555 region.
An intermediate resistance is pegged near 23.6% Fibo. level – around the $1540 region – though is unlikely to hinder the positive momentum amid persistent US-China trade uncertainties and growing concerns about slowing global economic growth.
Gold 1-hourly chart
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