- Gold traded with a negative bias through the mid-European session on Wednesday.
- The risk-on mood, stronger USD exerted some pressure on the precious metal.
- Mixed technical indicators on 4-hourly/daily charts warrant some caution for bears.
Gold failed to capitalize on its intraday uptick, rather met with some fresh supply near the $1972 region and was last seen hovering near the lower end of its daily range.
Looking at the technical picture, the commodity has been oscillating between two converging trend-line and seemed to have formed a symmetrical triangle on short-term charts. Given the recent strong rally, the triangle points to a near-term consolidation phase and might still be categorized as a bullish continuation.
That said, it will be prudent to wait for a sustained break through the triangle resistance before placing fresh bullish bets. The mentioned barrier coincides with the weekly swing highs, around the $1992 region, and is followed by the key $2000 psychological mark, which should act as a key pivotal point for traders.
Meanwhile, bearish technical indicators on hourly charts support prospects for further intraday weakness amid the prevalent risk-on mood and some follow-through USD strength. However, oscillators on the daily chart are still holding in the bullish territory, warranting some caution for aggressive bearish traders.
Hence, any subsequent slide might attract some dip-buying near the $1955-53 horizontal zone. Some follow-through selling might turn the commodity vulnerable to accelerate the fall back towards challenging the triangle support, currently near the $1920-18 region.
Gold 4-hourly chart
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Technical levels to watch
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