- Gold struggled to capitalize on the attempted intraday bounce and failed near 50-hour SMA.
- Mixed oscillators haven’t been supportive of any firm direction and warrant some caution.
Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European session on Wednesday. Meanwhile, the earlier attempted recovery move remained capped near 50-hour SMA, which should now act as a key pivotal point for the commodity's intraday movement.
Given the overnight break below a one-week-old ascending trend-channel, the intraday rejection favours bearish traders and support prospects for further weakness. Bearish technical indicators on hourly charts further reinforce the negative outlook amid a rebound in the global risk sentiment on Wednesday.
However, oscillators on the daily chart, although have been correcting, have still managed to hold in the bullish territory and warrant some caution for aggressive traders. Hence, it will be prudent to wait for some strong follow-through selling below the $1550 level before positioning for any further depreciating move.
Below the mentioned support, the commodity is likely to accelerate the slide back towards last week's swing lows, around the $1536-35 region. Some follow-through selling will set the stage for an extension of the recent pullback from multi-year tops and drag the commodity towards the $1520-18 horizontal support.
Gold 1-hourly chart
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