Gold Price Analysis: Dip-buying should help limit any meaningful slide
|- Gold struggled to capitalize on its early uptick to over one-week tops.
- The pullback might still be seen a buying opportunity near $1720 level.
Gold extended its steady intraday pullback from over one-week tops and was last seen trading near the lower end of its daily trading range, around the $1730 region.
The pullback lacked any major catalyst and could be solely attributed an intraday USD rebound, which tends to undermine demand for the dollar-denominated commodity.
Given Friday's sustained break through the $1720 horizontal resistance, which coincided with 100-hour SMA, the set-up still seems tilted in favour of bullish traders.
The positive outlook is further reinforced by bullish oscillators on 4-hourly/daily charts, which support prospects for the emergence of some dip-buying at lower levels.
Hence, any subsequent fall might still be seen as a buying opportunity near the mentioned confluence resistance breakpoint amid a weaker tone around the equity markets.
That said, a convincing break through the $1720 support zone might prompt some technical selling and accelerate the fall back towards challenging the $1700 mark.
On the upside, the $1744-45 region, closely followed by the $1750 level now seems to act as immediate resistance, which if cleared might be seen as a fresh trigger for bulls.
The commodity might then aim to retest multi-year tops, near the $1765 level, en-route a near two-month-old ascending channel resistance, around the $1780 region.
Gold 1-hourly chart
Technical levels to watch
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