Gold technical analysis: Clings to gain near the top end of 2-week old trading range
|- Reviving safe-haven demand helped gain some follow-through traction on Wednesday.
- Sustained move beyond 200-hour SMA was seen as a trigger for intraday bullish traders.
Gold gained some follow-through traction for the second consecutive session on Wednesday and is currently placed at the top end of a near two-week-old trading range.
A sustained move beyond 200-hour SMA pivotal point was seen as a key trigger for intraday bullish traders amid reviving demand for traditional safe-haven assets.
Meanwhile, positive oscillators on hourly charts support prospects for additional gains, albeit neutral technical indicators on the daily chart warrant some caution.
Hence, it will be prudent to wait for a sustained breakthrough the mentioned trading range resistance, around the $1497 region, before placing fresh bullish bets.
Momentum beyond the said barrier has the potential to lift the commodity further beyond the key $1500 psychological mark towards testing the $1510-12 supply zone.
On the flip side, the $1489 region (200-hour SMA) now seems to protect the immediate downside, which if broken might accelerate the slide back towards $1482 support area.
The slide could further get extended towards the trading range support, near the $1477 region, before the metal eventually drops to monthly swing lows – around the $1459 region.
Gold 1-hourly chart
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