Gold technical analysis: Consolidates near weekly tops, NFP eyed for a fresh impetus
|- The positive momentum stalls ahead of a one-month-old trading range resistance.
- Technical set-up support prospects for additional gains, albeit needs confirmation.
Gold failed to capitalize on the positive move witnessed over the past two trading sessions and was seen consolidating in a range just below weekly tops set earlier this Friday.
The momentum stalled ahead of the $1516-18 supply zone, marking the top end of a one-month-old trading range, which should act as a key pivotal point for short-term traders.
Slightly overbought conditions on hourly charts seemed to be the only factor holding investors from placing fresh bullish bets ahead of the closely watched US monthly jobs report.
Meanwhile, oscillators on the daily chart have just started gaining positive traction and support prospects for additional gains amid the prevalent USD selling bias.
However, traders are likely to wait for a sustained break through the mentioned trading range barrier before positioning for a move towards $1533-35 resistance area.
The momentum could further get extended towards $1540-42 intermediate resistance en-route the $1555-57 region – multi-year tops set in September.
Conversely, rejection from the current resistance zone and a subsequent weakness back below the key $1500 psychological mark might negate the near-term constructive outlook.
The commodity then could slide back towards the $1485 horizontal support ahead of the $1480 level and the lower end of the trading range, around the $1474-73 region.
Gold daily chart
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