- Gold attracts some dip-buying near the $1770 confluence support.
- The set-up favours bulls and supports prospects for additional gains.
- A sustained move beyond $1780 level will reinforce the bullish bias.
Gold reversed an early dip to the $1770 area and turned positive for the day, albeit lacked any strong follow-through and remained below the $1780 horizontal resistance. The emergence of some intraday buying reinforced a confluence support comprising of 200-hour SMA and one-month-old ascending trend-line support, which should act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have against started gaining some positive traction on hourly charts. This, in turn, supports prospects for additional gains. However, the prevalent risk-on environment held investors from placing any aggressive bullish bets and seemed to be the only factor capping any strong gains for the safe-haven precious metal, at least for the time being.
Hence, it will be prudent to wait for some follow-through strength beyond the $1780 level before positioning for any further appreciating move. The commodity might then aim to test the ambitious $1800/ounce target.
Conversely, a convincing breakthrough the mentioned confluence support near the $1770 region will negate the constructive outlook and accelerate the slide back towards last week's swing low, around the $1758-57 region. The corrective slide could further get extended towards intermediate support near the $1750 horizontal level before the commodity eventually drops to test a previous strong resistance near the $1742-40 zone.
Gold 1-hourly chart
-637296329788812211.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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.