Gold Technical Analysis: Struggles to gain any positive traction despite risk-off mood
|• US-China trade tensions-led global wave of risk aversion trade fail to revive the precious metal's safe-haven demand, with traders even shrugging off a modest USD retracement.
• The fact that overnight recovery attempt was rejected near 100-hour SMA support-turned-resistance points to prevailing selling interest at higher levels, albeit $1248-47 area has been acting as a floor over the past 24-hours.
• With short-term technical indicators holding in negative territory, a follow-through weakness below 61.8% Fibonacci retracement level of the recent recovery move would add credence to the near-term bearish outlook.
Spot Rate: $1250.76
Daily High: $1256.93
Daily Low: $1248.36
Trend: Bearish
Resistance
R1: $1254.50 (horizontal zone)
R2: $1260 (overnight swing high)
R3: $1266 (near two-week tops set on Monday)
Support
S1: $1247 (overnight swing low)
S2: $1242 (recent daily closing low)
S3: $1238 (YTD low set earlier this month)
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