Gold Technical Analysis: Struggles to gain any positive traction despite risk-off mood

Haresh Menghani FXStreet

• US-China trade tensions-led global wave of risk aversion trade fail to revive the precious metal's safe-haven demand, with traders even shrugging off a modest USD retracement.

• The fact that overnight recovery attempt was rejected near 100-hour SMA support-turned-resistance points to prevailing selling interest at higher levels, albeit $1248-47 area has been acting as a floor over the past 24-hours.

• With short-term technical indicators holding in negative territory, a follow-through weakness below 61.8% Fibonacci retracement level of the recent recovery move would add credence to the near-term bearish outlook.

Gold 1-hourly chart

Spot Rate: $1250.76
Daily High: $1256.93
Daily Low: $1248.36
Trend: Bearish

Resistance
R1: $1254.50 (horizontal zone)
R2: $1260 (overnight swing high)
R3: $1266 (near two-week tops set on Monday)

Support
S1: $1247 (overnight swing low)
S2: $1242 (recent daily closing low)
S3: $1238 (YTD low set earlier this month)

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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