Gold Price Analysis: Finds some support near $1450 horizontal level, remains vulnerable
|- Gold witnessed some aggressive selling on the first day of a new trading week.
- The intraday slide took along some short-term trading stops near 200-day SMA.
- The near-term oversold conditions warrant some consolidation or a modest bounce.
Gold extended last week's sharp retracement slide from multi-year tops and witnessed some aggressive selling for the fifth consecutive session on the first day of a new trading week.
A sustained break below the very important 200-day SMA, near the key $1500 psychological mark, was seen as a key trigger for bearish traders and aggravated the selling pressure.
The commodity nosedived to over one-month lows and is currently placed near an important congestion zone, around the $1450 region, tested in November and December 2019.
Meanwhile, technical indicators on short-term charts are already flashing slightly oversold conditions and warrant some caution before positioning for any further depreciating move.
Hence, a near-term consolidation, or a modest recovery to the $1480 region, looks a distinct possibility, albeit might still be seen as an opportunity to initiate some fresh bearish positions.
Meanwhile, a sustained break below the mentioned support might turn the commodity vulnerable and pave the way for an accelerated decline towards the $1400 round-figure mark.
Gold daily chart
Technical levels to watch
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.