- Gold regained positive traction for the second consecutive session on Monday.
- The set-up favours bullish traders and supports prospects for additional gains.
Gold reversed an early dip to the $1672 region and turned higher for the second straight session on Monday. The momentum lifted the commodity to one-month tops, or closer to the $1700 mark during the mid-European session.
A fresh wave of the global risk-aversion trade was seen as a key factor that underpinned the precious metal's safe-haven demand. This coupled with a modest USD weakness provided an additional boost to the dollar-denominated commodity.
Meanwhile, technical indicators on the daily chart maintained their bullish bias supporting prospects for a further appreciating move, albeit slightly overbought conditions on hourly charts warrant some caution for bullish traders.
Hence, any subsequent positive move is more likely to confront some fresh supply and remain capped near multi-year tops, around the $1703 region. That said, some follow-through buying will now be seen as a fresh trigger for bullish traders.
On the flip side, the $1680 region, closely followed by the $1674-72 area, now seems to protect the immediate downside. Failure to defend the mentioned support levels might negate the positive outlook and prompt some technical selling.
The commodity might then accelerate the slide further towards $1652-50 intermediate support before eventually dropping to test the $1640 horizontal level.
Gold 4-hourly chart
-637223774895244455.png)
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD turns sideways below 1.0900 ahead of Fedspeak
EUR/USD is trading sideways below 1.0900 in European trading on Monday, despite a risk-on market mood. The pair, however, finds support from the struggling US Dollar and sluggish US Treasury bond yields, awaiting Fedspeak amid light European trading.
Gold price rises to a new record high, escalating geopolitical tensions in focus
Gold price gains momentum on Monday. The yellow metal hit a record high near $2,441 during the Asian session on Monday amid renewed hopes for interest rate cuts from the US Federal Reserve and rising geopolitical tensions in the Middle East.
GBP/USD advances to near 1.2700 due to rising expectations for Fed rate cuts in 2024
GBP/USD extends its gains for the second consecutive session, trading around 1.2710 during the Asian hours on Monday. A weaker US Dollar supports the pair. The Pound Sterling may face a challenge as the BoE is expected to deliver 60 basis points rate cuts in 2024.
Ripple stays above $0.50 on Monday as firm backs research on blockchain and quantum computing
XRP price holds steady above the $0.50 key support level and edges higher on Monday, trading at 0.5130 and rising 0.70% in the day at the time of writing.
Week ahead: Nvidia results and UK CPI falling back to target
What a week for investors. The Dow Jones reached a record high and closed last week above 40,000, for the first time ever. This is a major bullish signal even though gains for global stocks were fairly modest on Friday, and European stocks closed lower.