Gold Price Analysis: Dip-buying should help limit any meaningful slide

  • Gold struggled to capitalize on its early uptick to over one-week tops.
  • The pullback might still be seen a buying opportunity near $1720 level.

Gold extended its steady intraday pullback from over one-week tops and was last seen trading near the lower end of its daily trading range, around the $1730 region.

The pullback lacked any major catalyst and could be solely attributed an intraday USD rebound, which tends to undermine demand for the dollar-denominated commodity.

Given Friday's sustained break through the $1720 horizontal resistance, which coincided with 100-hour SMA, the set-up still seems tilted in favour of bullish traders.

The positive outlook is further reinforced by bullish oscillators on 4-hourly/daily charts, which support prospects for the emergence of some dip-buying at lower levels.

Hence, any subsequent fall might still be seen as a buying opportunity near the mentioned confluence resistance breakpoint amid a weaker tone around the equity markets.

That said, a convincing break through the $1720 support zone might prompt some technical selling and accelerate the fall back towards challenging the $1700 mark.

On the upside, the $1744-45 region, closely followed by the $1750 level now seems to act as immediate resistance, which if cleared might be seen as a fresh trigger for bulls.

The commodity might then aim to retest multi-year tops, near the $1765 level, en-route a near two-month-old ascending channel resistance, around the $1780 region.

Gold 1-hourly chart


Technical levels to watch


Today last price 1733.12
Today Daily Change 3.72
Today Daily Change % 0.22
Today daily open 1729.4
Daily SMA20 1719.34
Daily SMA50 1684.74
Daily SMA100 1634.41
Daily SMA200 1565.08
Previous Daily High 1737.78
Previous Daily Low 1712.96
Previous Weekly High 1737.78
Previous Weekly Low 1693.78
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1728.3
Daily Fibonacci 61.8% 1722.44
Daily Pivot Point S1 1715.65
Daily Pivot Point S2 1701.89
Daily Pivot Point S3 1690.83
Daily Pivot Point R1 1740.47
Daily Pivot Point R2 1751.53
Daily Pivot Point R3 1765.29



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