Gold Price Analysis: Depressed near $1735 level, bullish bias remains

Gold traded with a negative bias through the early North American session, albeit has managed to hold above a horizontal support near the $1730-28 region. Meanwhile, the recent move up has been along a two-month-old upward sloping channel, which supports prospects for a further near-term appreciating move.

The positive outlook is further reinforced by the fact that technical indicators on the daily chart are still holding in the bullish territory. However, oscillators on hourly charts have been losing positive momentum. Driving indicators on hourly/daily charts and warrant some caution before placing any directional bets.

That said, a convincing break below the mentioned support might prompt some aggressive technical selling and turn the commodity vulnerable to accelerate the fall further towards challenging the trend-channel support, currently near the $1700 mark.

On the flip side, any meaningful positive move now seems to confront immediate resistance near the $1755 level. Some follow-through buying now seems to set the stage for a move beyond multi-year tops, near the $1765 region. The yellow metal might then aim to test the top end of the mentioned channel, around the $1775 area.

Gold 4-hourly chart

Technical levels to watch