- The early attempted recovery move runs out of the steam rather quickly.
- The near-term technical set-up seems firmly in favour of bearish traders.
Gold failed to capitalize on its attempted intraday positive move and is currently placed near the lower end of its daily trading range, closer to three-month lows set on Friday.
Given last week’s break below a confluence support comprising of 100-day SMA and the lower end of the recent trading range, the set-up seems tilted in favour of bearish traders.
The commodity held stable near the $1460 region, which coincides with 61.8% Fibonacci level of the $1400-$1557 move and should act as a key pivotal point for short-term traders.
Meanwhile, oscillators on the daily chart have been drifting lower along the negative territory and also recovered from the oversold territory on hourly charts, reinforcing the bearish bias.
Below the mentioned $1460 region, the commodity seems vulnerable to accelerate the slide towards the $1447-45 intermediate support area en-route the $1436 horizontal level.
On the flip side, the confluence support breakpoint, around the $1475 region, might act as immediate resistance and any subsequent recovery is likely to remain capped near the $1480 level.
Gold daily chart