Gold price is slightly up ahead of the US trading session, on corrective rebounds following selling pressure that leads gold to four months low of 1,266. Well, what’s more, impressive for the gold bulls is the fact the US dollar index hit a new multi-month high during the previous session. However, gold didn’t bother to react, despite sharing a strong negative correlation.
Gold - Technical Analysis
Technically, sellers can look to break below 200-SMA around the 1249 support area in a medium term.
There is bullish divergence on the momentum indicators such as RSI and stochastics.
On the upside, bulls will need to get and stay above 1275 and then 1280 before 1303 with a look in at 1308 (61.8% Fibo) and the trendline resistance.
There’s a bullish hammer on the daily timeframe which is supporting gold above 1,266 and could also trigger buying until 1,284.
So 1,284 is a crucial level, and traders may trigger further selling below this level.
Key Trading Level: 1274.55