Gold snaps four days of winning streak, eases below $1230 on profit taking

Gold snapped four consecutive days of winning streak and weakened on Tuesday, reversing previous session gains to two-week highs.

Currently trading around $1229 region, off session low touched during Asian session, a wave of profit taking seems to have kicked-in as traders seemed to lighten their bullish bets following the precious metal's strong up-move in wake of not so hawkish Fed monetary policy outlook.

Moreover, easing worries over the political uncertainty in the Euro-area, in reaction to Emmanuel Macron's win at the first French Presidential debate, further weighed on traditional safe-haven assets and is collaborating to the yellow metal's retracement from the highest level since March 6.

Later during European session, the New York Fed President William Dudley's speech at the Bank of England might drive the US Dollar and eventually provide some fresh impetus for dollar-denominated commodities, including gold.

Technical levels to watch

A follow through retracement below session lows support near $1226 area is likely to accelerate the corrective slide further towards $1217-15 support ahead of 100-day SMA near $1207-06 region. 

On the upside, momentum above $1236 level now seems to pave way for continuation of the commodity's up-move beyond $1240 intermediate resistance towards its next major hurdle near $1250 region.


15M Bullish Neutral Low
1H Bullish Neutral High
4H Bullish Overbought Expanding
1D Bearish Oversold Shrinking
1W Bullish Neutral Low