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.

Haresh Menghani FXStreet

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

Technical levels to watch

XAU/USD

Overview
Today last price	1697.91
Today Daily Change	-4.77
Today Daily Change %	-0.28
Today daily open	1702.68

Trends
Daily SMA20	1698.76
Daily SMA50	1639.48
Daily SMA100	1595.21
Daily SMA200	1542.48

Levels
Previous Daily High	1713.62
Previous Daily Low	1692.3
Previous Weekly High	1728.71
Previous Weekly Low	1670.72
Previous Monthly High	1747.82
Previous Monthly Low	1568.46
Daily Fibonacci 38.2%	1705.48
Daily Fibonacci 61.8%	1700.44
Daily Pivot Point S1	1692.11
Daily Pivot Point S2	1681.55
Daily Pivot Point S3	1670.79
Daily Pivot Point R1	1713.43
Daily Pivot Point R2	1724.19
Daily Pivot Point R3	1734.75

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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