- On offers for the second straight session amid renewed trade optimism.
- The near-term technical set-up remains tilted in favour of bearish traders.
Gold added to the previous session's modest losses and remained under some selling pressure for the second consecutive session on Monday, erasing all of the gains recorded last week.
Given that the precious metal stalled its attempted recovery from three-month lows near a confluence support breakpoint turned resistance, the set-up seems tilted in favour of bearish traders.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again started gaining negative traction on hourly charts, reinforcing the negative outlook for the commodity.
Hence, some follow-through weakness back towards $1455 horizontal support en-route last week’s swing lows, around the $1445 region, remains a distinct possibility amid renewed trade optimism.
The latter coincides with 38.2% Fibonacci level of the $1265-$1557 bullish move, which if broken might be seen as a key trigger for bearish traders and pave the way for a further depreciating move.
Below the mentioned support, the commodity is likely to accelerate the slide further towards $1432-30 intermediate support before eventually dropping to 50% Fibo. support near the $1414-12 region.
On the flip side, the $1470-75 zone might continue to act as an immediate strong resistance, which if cleared decisively might trigger a bout of short-covering and lift the metal towards the $1490 region.
Gold daily chart
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