Gold bid in Asia, attempts break above 50-hour MA

Gold is reporting gains in Asia and is flirting with the 50-hour moving average (MA) hurdle.
The major MAs indicate the gains will likely be short-lived.

Omkar Godbole FXStreet Contributor

Oversold conditions have likely put a bid under gold in Asia, consequently, the yellow metal is flashing green.

At press time, gold is flirting with the 50-hour moving average (MA) hurdle of $1,244, having clocked a 2018 low of $1,236 on Friday.

The hard currency has dropped 9.45 percent in the last three months on increased prospects of faster Fed tightening and breached a long-term ascending trendline support on Friday.

Further, the intraday charts remain biased toward the bears as the 100-hour MA is located below the 200-hour MA. So, corrective rallies could be short-lived.

On the data front, China's Q2 GDP today will be closely watched for evidence of a slowdown due to trade tensions. Also scheduled for release are monthly retail sales, industrial production figures. A weaker-than-expected GDP reading could add to the bullish tone around the safe haven yellow metal.

Gold Technical Levels

Resistance: $1,244 (50-hour MA), $1,248 (100-hour MA), $1,252 (200-hour MA).

Support: $1,239 (support on the hourly chart), $1,236 (Friday's low), $1,234 (50-month MA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H	Bullish	Neutral	Low
4H	Bearish	Neutral	Low
1D	Bearish	Neutral	Expanding
1W	Strongly Bearish	Oversold	Expanding
Updated Jul 16, 01:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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