Gold Technical Analysis: The set-up seems tilted in favour of bearish traders

Gold regains some positive traction amid persistent trade uncertainty.
The upside is likely to remain capped ahead of the FOMC policy update.

Gold remained well within a broader trading band held over the past one month or so and the range-bound price action constituted towards the formation of a rectangle on the daily chart.

Given the commodity's recent pullback from multi-year tops and a subsequent break through the key 100-day SMA support, the rectangle might still be categorized as a continuation pattern.

This coupled with the fact that the yellow metal has been trending lower along a descending trend-channel formation over the past two months or so further adds credence to the negative outlook.

However, persistent US-China trade uncertainty seemed to be the only factor lending some support and helping limit the downside, at least for the time being and ahead of the FOMC policy update.

Hence, it will be prudent to wait for a sustained weakness below the recent trading range support, around the $1455-54 region, before positioning for any further near-term depreciating move.

Below the mentioned support, the commodity is likely to accelerate the slide further towards November monthly lows support near the $1445 region en-route the lower end of the descending channel.

On the flip side, any attempted positive move might continue to confront some fresh supply around the $1475-76 region and is likely to remain capped by 100-day SMA barrier near the $1487-88 region.

Above the mentioned hurdle, the commodity is likely to aim towards reclaiming the key $1500 psychological mark before eventually darting towards the trend-channel resistance, near the $1507 region.

Gold daily chart