XAU/USD Outlook: Bears look for extension below $1459 pivot as thick daily cloud weighs
|GOLD
Spot gold bounced from new five-week low, posted after 1.5% fall previous day, but recovery was so far limited and stalled at $1472, maintaining firm bearish tone.
The yellow metal was hurt by fresh optimism as US and China came close to get the first phase of their trade deal done, that boosted risk appetite.
Thursday's fall came tick away from key support at $1459 (1 Oct low), loss of which would signal an end of $1459/$1519 consolidative phase and risk further weakness.
Break of $1459 pivot would risk test of key Fibo support at $1445 (38.2% of $1266/$1557 bull-leg).
Daily techs are in bearish setup, with gold being on track for the biggest weekly loss in two years that adds to negative outlook.
However, oversold daily stochastic warns that the price may show further hesitation to break lower and hold in extended consolidation.
Broken 100DMA ($1476) and daily cloud base ($1478) is expected to limit upticks and keep bears in play.
Res: 1472; 1476; 1478; 1482
Sup: 1465; 1459; 1453; 1445
Interested in XAU/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.