Gold Price Analysis: Consolidates around $1775 level, bullish bias remains

Gold extended its sideways consolidative price action through the mid-European session and remained confined in a narrow trading band, around the $1775 region.

Meanwhile, the recent move up over the past one month or so has been along an ascending trend-line. The overnight resilience below the mentioned trend-line, which coincides with 200-hour SMA, favours bullish traders and supports prospects for additional gains.

Meanwhile, technical indicators on hourly/daily charts maintained their bullish bias and are still far from being in the overbought territory. This, in turn, adds credence to the constructive set-up amid growing worries about surging coronavirus cases across the world.

Hence, some follow-through positive move beyond the $1789 region, multi-year tops set on Wednesday, remains a distinct possibility. Bulls are likely to aim for a move to test the ambitious $1800/ounce target en-route the next major hurdle near the $1811 region.

On the flip side, the mentioned confluence region, currently around the $1770 region, might continue to protect the immediate downside. Failure to defend the mentioned support will negate the bullish outlook and prompt some aggressive technical selling.

The commodity might then accelerate the slide further towards the overnight swing high, around the $1758-57 region before eventually dropping to its next major support near the $1745-44 horizontal zone.

Gold 1-hourly chart

Technical levels to watch