XAU/USD outlook: Gold remains at the back foot but still above key supports
|XAU/USD
Gold trades within a narrow range on Tuesday morning, following almost 2% drop on Monday and daily close below psychological $3400 support (reverted to resistance and caps the action for now).
Surprise drop despite escalation of conflict between Israel and Iran still looks as correction and positioning for fresh push higher, as initial support at $3374 (Fibo 23.6% of $3120/$3452/daily Tenkan-sen) contained dip.
Technical picture on daily chart is still bullish (strong positive momentum / Tenkan/Kijun-sen in bullish setup), but Monday’s bearish engulfing warns that downside pressure exists.
Depper pullback will face a trendline support at $3350 and should not exceed $3325 zone (Fibo38.2%) to mark a healthy correction and provide better levels to re-enter bullish market.
Alternatively, key supports at $3286 (daily cloud top reinforced by Kijun-sen / 50% retracement) would come under increased pressure.
Res: 3410; 3437; 3452; 3500.
Sup: 3374; 3350; 3325; 3300.
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.