- Gold built on the previous day’s positive move and gained some follow-through traction on Tuesday.
- The set-up seems tilted firmly in favour of bullish trades and supports prospects for additional gains.
Gold edged higher through the mid-European session and climbed to two-week tops, around the $1972 region in the last hour.
Bulls are now looking to build on the momentum further beyond an important confluence resistance – comprising of a near one-month-old descending trend-line and 50% Fibonacci level of the $2075-$1863 corrective slide.
The mentioned trend-line, along with a strong horizontal support near the $1900 mark, constituted the formation of a descending triangle. A convincing breakthrough will set the stage for a further near-term appreciating move.
The constructive outlook is further reinforced by the prevalent USD selling bias. This coupled with the fact that oscillators on hourly charts maintained their bullish bias and have again started gaining traction on the daily chart support prospects for additional gains.
Hence, a subsequent positive move towards 61.8% Fibo. level, around the $1995 region, now looks a distinct possibility. Some follow-through buying beyond the key $2000 psychological mark should pave the way for a move towards the next major hurdle near the $2015 horizontal level.
On the flip side, the $1960-59 region now seems to protect the immediate downside, below which the commodity could slide back towards the 38.2% Fibo. level, around the $1942-40 area. Failure to defend the support levels might turn the metal vulnerable to slide further.
Bearish might then aim to test the $1920-15 intermediate support before eventually dragging the commodity back towards the $1900 strong support.
Gold 4-hourly chart
Technical levels to watch
|Today last price||1970.43|
|Today Daily Change||13.63|
|Today Daily Change %||0.70|
|Today daily open||1956.8|
|Previous Daily High||1962.6|
|Previous Daily Low||1937.1|
|Previous Weekly High||1966.54|
|Previous Weekly Low||1906.62|
|Previous Monthly High||2075.32|
|Previous Monthly Low||1863.24|
|Daily Fibonacci 38.2%||1952.86|
|Daily Fibonacci 61.8%||1946.84|
|Daily Pivot Point S1||1941.73|
|Daily Pivot Point S2||1926.67|
|Daily Pivot Point S3||1916.23|
|Daily Pivot Point R1||1967.23|
|Daily Pivot Point R2||1977.67|
|Daily Pivot Point R3||1992.73|
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.