- 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
-637242797131251678.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
AUD/USD maintains its constructive bias above 0.6600
Further weakness in the US Dollar prompted AUD/USD and the rest of the risk-associated space to regain some balance and surpass once again the key barrier at 0.6600 the figure.
EUR/USD finds thin gains on Monday, but technicals weigh heavy ahead of US inflation updates
EUR/USD found slim upside on Monday, climbing from early bids near 1.0770 but bullish momentum remains limited with the pair struggling to break above the 1.0800 level.
Gold loses its bright amid mixed market mood
Gold prices retreated sharply on Monday from near $2,350 even though US Treasury yields declined, undermining appetite for the Greenback. Traders brace for a busy economic docket in the United States. The XAU/USD trades around $2,336, down 1% amid a risk-on impulse.
Ethereum trades horizontally as institutional whales dump heavily on Coinbase
Ethereum sustained its weekend sideways movement on Monday following a quiet market. However, institutional whales have been depositing the largest altcoin to Coinbase as ETH products also recorded $14.4 million in outflows last week.
Dow Jones Industrial Average stumbles on Monday after consumer inflation outlook rises
DJIA kicked off the new trading week softly higher before getting knocked back after the Federal Reserve Bank of New York revealed that consumer inflation expectations for the coming year accelerated to 3.3%.