Gold technical analysis: Drops to multi-day lows, back below $1500 handle

Gold edged lower through the mid-European session on Monday and slipped below the key $1500 psychological mark to hit multi-day lows in the last hour.
Sustained weakness below 200-hour SMA - coinciding with 23.6% Fibo. level of the $1400-$1535 upsurge - was seen as a key trigger for intraday bearish traders.

Haresh Menghani FXStreet

Meanwhile, technical indicators have been gaining negative traction on hourly charts and support prospects for an extension of the corrective slide back towards testing last week's swing lows - around the $1483-81 region - nearing 38.2% Fibo. level.

However, oscillators on the daily chart maintained their bullish bias and might continue to attract some dip-buying interest, which might help limit further downside ahead of Wednesday's important release of the latest FOMC policy meeting minutes.

Failure to defend the mentioned support might prompt some follow-through technical selling and accelerate the slide further towards $1475 intermediate support en-route 50$ Fibo. level - around the $1467-65 region amid fading safe-haven demand.

On the flip side, the $1500-10 region (23.6% Fibo. level and 100-hour SMA) now seems to act as an immediate resistance, which if cleared might accelerate the up-move towards $1522 intermediate resistance before the commodity aims back towards multi-year tops.

Gold 1-hourly chart

XAU/USD

Overview
Today last price	1498.82
Today Daily Change	-14.78
Today Daily Change %	-0.98
Today daily open	1513.6

Trends
Daily SMA20	1463.04
Daily SMA50	1420.56
Daily SMA100	1355.11
Daily SMA200	1317.2

Levels
Previous Daily High	1527.65
Previous Daily Low	1504.2
Previous Weekly High	1534.4
Previous Weekly Low	1481
Previous Monthly High	1452.72
Previous Monthly Low	1382.02
Daily Fibonacci 38.2%	1513.16
Daily Fibonacci 61.8%	1518.69
Daily Pivot Point S1	1502.65
Daily Pivot Point S2	1491.7
Daily Pivot Point S3	1479.2
Daily Pivot Point R1	1526.1
Daily Pivot Point R2	1538.6
Daily Pivot Point R3	1549.55

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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