Gold Technical Analysis: Climbs further beyond 200-hour SMA, inching closer to $1470 level
- Gold gains positive traction for the second consecutive session on Tuesday.
- Trade uncertainty continues to benefit the commodity’s safe-haven demand.
- Further gains are likely to remain capped ahead of the FOMC policy update.
Gold added to the previous session's modest gains and gained some follow-through traction for the second consecutive session on Tuesday amid persistent trade uncertainties.
The intraday uptick lifted the pair beyond the overnight swing high, a resistance marked by 23.6% Fibonacci of the $1484-$1459 recent slide from the vicinity of 100-day SMA.
A subsequent move beyond 200-hour SMA might be seen as a key trigger for intraday bullish traders and support prospects for additional gains amid reviving safe-haven demand.
Some follow-through buying beyond 38.2% Fibo. level, around the $1469-70 region, will reinforce the constructive outlook and pave the way for additional recovery for the metal.
Meanwhile, technical indicators on the 4-hourly chart have again started gaining positive traction but are yet to catch up with the momentum on the daily chart, warranting some caution.
Moreover, oscillators on the 1-hourly chart are already flashing slightly overbought conditions and might further hold investors from placing fresh bets ahead of the FOMC on Wednesday.
Hence, any meaningful positive move seems more likely to confront some supply around the $1475-76 region and remain capped by 100-day SMA barrier near the $1487-88 region.
Gold 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
