- Gold extended the previous session's sharp intraday pullback from 14-month tops and remained under some selling pressure through the mid-European session on Monday.
- A sustained break below 23.6% Fibo. level of the $1271.80-$1358.20 up-move, coinciding with 100-hour SMA might now be seen as a key trigger for short-term bearish traders.
A follow-through selling below 200-hour SMA will reinforce the negative outlook and accelerate the slide towards 38.2% Fibo. level support near the $1325 region ahead of Wednesday’s FOMC policy update.
Meanwhile, technical indicators on the 4-hourly chart have been losing traction and turned out to be one of the key factors prompting some long-unwinding trade amid receding demand for traditional safe-haven assets.
However, oscillators on the 1-hourly chart have now moved on the verge of falling into the oversold territory and maintained their bullish bias on the daily chart, warranting some caution for aggressive traders.
On the flip side, any attempted move back above the mentioned support breakpoint might now confront some fresh supply and seems more likely to remain capped near the $1343-45 supply zone.
Gold 1-hourly chart
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