Gold Price Analysis: Trades with modest losses, downside seems limited
by Haresh Menghani- Gold edged lower on the first day of a new trading week amid the upbeat market mood.
- The downtick lacked any strong follow-through and the metal held above $1722 support.
- Mixed oscillators warrant some caution before placing any aggressive directional bets.
Gold traded with a mild negative bias through the mid-European session amid the prevalent risk-on mood, albeit has managed to defend the $1722 horizontal support.
Looking at the broader picture, the recent move up has been along a two-month-old upward sloping channel. This coupled with the fact that technical indicators on the daily chart are holding in the bullish territory supports prospects for a further near-term appreciating move.
However, oscillators on hourly charts have been struggling to gain any meaningful traction. The set-up – though seems tilted in favour of bullish traders – warrants some caution before positioning aggressively for any meaningful appreciating move amid stronger USD.
Meanwhile, a convincing break below the mentioned support might prompt some aggressive technical selling and turn the commodity vulnerable to accelerate the fall further towards challenging the trend-channel support, currently near the $1710 region.
On the flip side, Friday's swing high, around the $1740 level, now seems to act as immediate resistance and is followed by the $1755 level. Above the mentioned barrier, the commodity is likely to aim back to retest multi-year tops, around the $1765 region.
The momentum could further get extended and lift the yellow metal further towards the top end of the trend-channel, currently near the $1775-76 region, en-route the $1800 round-figure mark.
Gold 4-hourly chart
Technical levels to watch
XAU/USD
Overview | |
---|---|
Today last price | 1728.12 |
Today Daily Change | -6.10 |
Today Daily Change % | -0.35 |
Today daily open | 1734.22 |
Trends | |
---|---|
Daily SMA20 | 1715.66 |
Daily SMA50 | 1663.44 |
Daily SMA100 | 1626.42 |
Daily SMA200 | 1559.69 |
Levels | |
---|---|
Previous Daily High | 1740.43 |
Previous Daily Low | 1724.46 |
Previous Weekly High | 1765.38 |
Previous Weekly Low | 1717.34 |
Previous Monthly High | 1747.82 |
Previous Monthly Low | 1568.46 |
Daily Fibonacci 38.2% | 1734.33 |
Daily Fibonacci 61.8% | 1730.56 |
Daily Pivot Point S1 | 1725.64 |
Daily Pivot Point S2 | 1717.07 |
Daily Pivot Point S3 | 1709.67 |
Daily Pivot Point R1 | 1741.61 |
Daily Pivot Point R2 | 1749.01 |
Daily Pivot Point R3 | 1757.58 |