- Gold on Friday managed to defend a confluence support near the $1420 region - comprising of 100-hour SMA and 61.8% Fibo. level of the $1400-$1453 move to fresh multi-year tops.
- The precious metal was now seen oscillating in a narrow trading band and hovered around 50% Fibo. level through the early European session on the first day of a new trading week.
Meanwhile, technical indicators on the 1-hourly chart have already started recovering from the negative territory and maintained their bullish bias on 4-hourly/daily charts, supporting prospects for some renewed up-move amid escalating geopolitical tensions in the Middle East.
However, the fact that investors might have already started scaling back expectations for an aggressive Fed rate cut move at the upcoming policy meeting seemed to be the only factor holding investors from placing any aggressive bullish bets around the non-yielding yellow metal.
Hence, it would be prudent to wait for a move beyond the Asian session swing high, around the $1430 region – also nearing 38.2% Fibo. level, before traders start positioning for any further near-term appreciating move back towards the $1440 supply zone.
On the flip side, a sustained breakthrough the above-mentioned confluence support, near the $1420 region might prompt some fresh technical selling and turn the commodity vulnerable to accelerate the slide back towards challenging the key $1400 psychological mark.
Gold 1-hourly chart
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