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

Gold edged lower on Thursday but managed to hold above the $1730-25 support area.
Mixed technical indicators warrant some caution before placing fresh directional bets.

Haresh Menghani FXStreet

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

XAU/USD

Overview
Today last price	1735.52
Today Daily Change	-13.42
Today Daily Change %	-0.77
Today daily open	1748.94

Trends
Daily SMA20	1715.53
Daily SMA50	1658.42
Daily SMA100	1622.26
Daily SMA200	1557.58

Levels
Previous Daily High	1754.04
Previous Daily Low	1742.74
Previous Weekly High	1751.8
Previous Weekly Low	1690.05
Previous Monthly High	1747.82
Previous Monthly Low	1568.46
Daily Fibonacci 38.2%	1749.72
Daily Fibonacci 61.8%	1747.06
Daily Pivot Point S1	1743.11
Daily Pivot Point S2	1737.27
Daily Pivot Point S3	1731.81
Daily Pivot Point R1	1754.41
Daily Pivot Point R2	1759.87
Daily Pivot Point R3	1765.71

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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