Gold Price Analysis: Stuck in a range around $1700 mark, downside seems limited
- Gold seesawed between tepid gains/minor losses through the mid-European session.
- The set-up supports prospects for the emergence of some dip-buying and favours bulls.
Gold extended its two-way/directionless trading action for the second consecutive session on Tuesday and remained confined in a $20 trading range around the $1700 mark.
Bulls have been repeatedly failed to build on the attempted intraday positive move beyond 200-hour SMA, while the downside remained limited near the $1690 support area.
Meanwhile, neutral technical indicators on hourly charts haven't been supportive of any firm intraday direction, albeit positive oscillators on the daily chart favour bulls.
The technical set-up supports prospects for the emergence of some dip-buying near the $1690 horizontal level and a move towards testing the $1720-22 supply zone.
This is followed by resistance near the $1730 region, above which the commodity seems all set to head back towards challenging multi-year tops, around the $1748 region.
On the flip side, a sustained break through the mentioned support might negate the constructive outlook and turn the commodity vulnerable to accelerate the slide towards the $1670 level.
Some follow-through selling has the potential to drag the yellow metal further towards the $1660 area, which, if broken decisively, should be seen as a fresh trigger for bearish traders.
Gold 1-hourly 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.
