Gold Price Analysis: Better bid, but remains in bearish territory below $1,594

Gold is reporting gains as the dollar is trading in a sideways manner.
A break above $1,594 is needed to invalidate the bearish outlook.

Omkar Godbole FXStreet Contributor

Gold is currently trading near $1,585 per ounce, representing a 0.55% gain on the day, having hit a low of $1,566 in the overnight trade.

The yellow metal is flashing green alongside a mixed action in the Asian stocks. While Australia's ASX 200 index is up more than 3 percent, stocks in Japan, Hong Kong are trading in the red. Meanwhile, South Korea's Kospi is flat-lined and the shanghai Composite index is adding nearly 0.70 percent.

Meanwhile, the dollar index, gold's biggest nemesis, is sidelined near 99.0, having faced rejection near 100.00 on Tuesday. The index topped out near 103.00 on March 20.

From a technical analysis standpoint, the yellow metal continues to trade below the double top neckline level of $1,594. The bias, therefore, remains bearish. The breakdown confirmed during Tuesday's US trading hours suggests scope for a drop to $1,548.

The bearish case would be invalidated if prices establish a secure foothold above $1,594.

4-hour chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1583.78
Today Daily Change	5.89
Today Daily Change %	0.37
Today daily open	1577.89

Trends
Daily SMA20	1590.67
Daily SMA50	1590.32
Daily SMA100	1544.6
Daily SMA200	1511.08

Levels
Previous Daily High	1623.74
Previous Daily Low	1574.53
Previous Weekly High	1644.54
Previous Weekly Low	1482.74
Previous Monthly High	1703.27
Previous Monthly Low	1451.3
Daily Fibonacci 38.2%	1593.33
Daily Fibonacci 61.8%	1604.94
Daily Pivot Point S1	1560.37
Daily Pivot Point S2	1542.84
Daily Pivot Point S3	1511.16
Daily Pivot Point R1	1609.58
Daily Pivot Point R2	1641.26
Daily Pivot Point R3	1658.79

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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