- The recent corrective bounce from three-month lows falters ahead of 100-DMA.
- Bears might now aim to challenge monthly swing low, around the $1445 region.
Gold seems to have stalled its recent corrective bounce from three-month lows and witnessed a modest pullback from previous support, now turned resistance near 100-day SMA.
Meanwhile, the commodity has been trending lower over the past two months or so along a descending trend-channel, which clearly points to a well-established near-term downtrend.
This coupled with the fact that technical indicators on the daily chart have struggled to recover from the negative territory add credence to the commodity’s near-term bearish outlook.
Hence, some follow-through weakness, possibly towards $1457-55 intermediate support en-route monthly swing lows around the $1445 region, now looks a distinct possibility.
The latter coincides with 38.2% Fibonacci level of the $1265-$1557 positive move and is closely followed by the lower end of the descending trend-channel, around the $1440 region.
Failure to defend the mentioned support levels might be seen as a key trigger for bearish traders and pave the way for an extension of the recent pullback from multi-year tops.
On the flip side, immediate resistance is pegged near the $1481-82 region (100-DMA), above which the commodity is likely to aim back towards the key $1500 psychological mark.
The momentum could further get extended towards the trend-channel resistance, currently near the $1509-10 region, which if cleared might negate any near-term bearish bias.
Gold daily chart
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