Gold fails to catch a bid despite bearish exhaustion signs

Gold remains flatlined around $1,292 despite signs of bearish exhaustion
Risk aversion in the equities is not helping the yellow metal either.

Omkar Godbole FXStreet Contributor

Currently, gold (XAU/USD) is flatlined around $1,292, having clocked a high of $1,296 earlier today.

The safe-haven metal continues to have a hard time building upside momentum despite multiple long-tailed daily candles and a bullish price-relative strength index (RSI) divergence in the 4-hour chart.

Further, the risk-off tone in the Asian equities, emerging market currency crisis and renewed trade tensions/North Korea issue has also failed to put a bid under the yellow metal.

That said, the probability of a corrective rally to $1,302 - double top neckline resistance (former support) remains high as long as prices remain above Monday's long-tailed doji candle low of $1,282.

Gold Technical Levels

Key support: $1,182 (Monday's low), $1,277 (100-week MA), $1,267 (76.4% Fib R of Dec-Jan rally).

Key resistance: $1,297 (50-week MA), $1,302 (double top neckline + 10-day MA), $1,308 (10-week MA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Shrinking
1H	Bullish	Neutral	Low
4H	Bearish	Neutral	High
1D	Bearish	Neutral	Low
1W	Strongly Bearish	Neutral	Low
Updated May 23, 05:00 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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