Gold technical analysis: Set-up points to additional gains, move beyond $1287-89 supply zone awaited
|• Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European trading session on Monday.
• Given Friday's sustained move beyond a flag chart pattern on the 1-hourly chart, technical set-up now seems to have turned in favor of bullish traders.
Moreover, the fact that the commodity is holding comfortably above 200-hour SMA coupled with bullish oscillators on hourly/daily charts further add credence to the constructive outlook and support prospects for an extension of the recent positive momentum.
A sustained move beyond the $1288-89 horizontal zone will reaffirm the bullish bias and prompt some aggressive technical buying, setting the stage for a possible move towards reclaiming the key $1300 psychological mark amid a subdued USD price action.
Gold 1-hourly chart
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