- Gold has been pivoting around the key $1500 psychological mark over the past two trading sessions and remained confined in a narrow trading band through the early European session on Thursday.
- The commodity has already found acceptance below 200-hour SMA and has been consolidating around 23.6% Fibonacci retracement level of the $1400-$1535 recent upsurge to multi-year tops.
Meanwhile, technical indicators on hourly charts have been drifting lower in the negative territory and now seemed to support prospects for an extension of the corrective slide back towards testing last week’s swing lows – around the $1483-81 region – also nearing 38.2% Fibo. level.
However, oscillators on the daily chart have still managed to maintain their bullish bias and should continue to attract some dip-buying interest at lower levels, which might help limit further downside ahead of the Fed Chair Jerome Powell’s scheduled speech at Jackson Hole on Friday.
Should bulls fail to defend the mentioned support, some follow-through selling might turn the precious metal to accelerate the slide further towards $1475 level en-route 50% Fibo. level near the $1467-65 zone and a previous resistance breakpoint turned support near the $1450 region.
On the flip side, 200-hour SMA – currently near the $1507 region now seems to act as an immediate resistance, which if cleared decisively might trigger a fresh leg of an up-move and lift the yellow metal back towards $1522 intermediate resistance ahead of multi-year tops.