Gold Technical Analysis: Set-up points to an extension of the intraday positive move

Haresh Menghani FXStreet

• Over the past two trading session, the precious metal has been trending higher alongside an ascending trend-channel formation on the 1-hourly chart and refreshed weekly tops in the last hour.

• The prevalent strong bearish sentiment surrounding the USD was seen as one of the key factors behind the dollar-denominated commodity's positive move for the second straight session.

• However, surging US Treasury bond yields, with yields on the benchmark 10-year bond hitting fresh four-month tops, kept a lid on any runaway rally for the non-yielding yellow metal.

• Meanwhile, technical indicators on the mentioned chart have started gaining positive traction and support prospects for additional gains, albeit risk-on mood might cap intraday up-move.

Gold 1-hourly chart

Spot Rate: $1206.62
Daily Low: $1201.33
Trend: Intraday bullish

Resistance
R1: $1209.10 (trend-channel hurdle)
R2: $1212.67 (monthly high set last week)
R3: $1216.47 (R3 daily pivot-point)

Support
S1: $1201.33 (current day swing low)
S2: $1198.87 (S1 daily pivot-point)
S3: $1192.81 (weekly low set on Tuesday)

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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