Gold technical analysis: Under pressure in Asia, $1,477 is key support

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  • Gold created an inside bar candle on Wednesday, signaling indecision in the market. 
  • A break below the candle’s low of $1,477 would put the bears in a commanding position. 

Gold is currently trading at $1,488 per Oz, representing 0.13% losses on the day, having hit a high of $1,493 at 00:45 GMT. 

The metal has come under pressure despite the signs of risk aversion in the global markets. The US stocks declined on Wednesday with the Dow Jones Industrial Average falling by 22.82 points. As of now, Asian stocks are also reporting marginal losses. 

The International Monetary Fund (IMF) on Wednesday revised the 2019 global growth forecast lower by 0.2 percentage points to 3% – the lowest forecast since the 2008 financial crisis. Even so, the yellow metal is not drawing haven bids. 

Technically speaking, the immediate outlook is neutral, as the market is looking indecisive, according to Wednesday’s inside bar candlestick pattern. 

A drop below the inside bar’s low of$1,477 would mean the period indecision has ended with a downside break. That could be followed by a sell-off to Oct. 1’s low near $1,460. 

The outlook would turn bullish if and when the metal rises above $1,520, invalidating the bearish lower highs setup. 

Daily chart

Trend: Cautiously bearish

Technical levels

 

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