Gold Price Analysis: Recovers early lost ground, jumps back above $1500 mark
- Gold showed some resilience below the 200-DMA and moves back above $1500 mark.
- Any subsequent recovery might still be seen as a selling opportunity and remain capped.
Gold managed to recover a major part of the early lost ground and is currently placed near the top end of its daily trading range, with bulls making a fresh attempt to build on the momentum back above the key $1500 psychological mark.
The fact that the commodity on Monday bounced from an important horizontal support near the $1450 region and has been showing some resilience below the very important 200-day SMA warrants some caution for bearish traders.
Meanwhile, technical indicators on the daily chart maintained their bearish bias. However, a turnaround in the US equity markets seemed to be the only factor holding traders from placing fresh bearish bets and led to a modest intraday bounce.
Hence, any subsequent recovery is more likely to confront some fresh supply and remain capped near the $1516 resistance zone. That said, a convincing break through might prompt some short-covering move towards the $1545 strong hurdle.
On the flip side, bearish traders are likely to wait for a sustained weakness below the $1450 region before positioning for any further near-term depreciating move, possibly towards challenging the $1400 round-figure mark.
Gold daily chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
