- Gold faded an early North American session bullish spike to three-day tops.
- The set-up warrants some caution before placing any fresh directional bets.
Gold failed to capitalize on its intraday bullish spike to the three-day tops and quickly retreated $20 during the early North American session.
The commodity struggled to find acceptance above 200-hour SMA and is now headed towards the lower end of its daily trading range. The mentioned level, around the $1955 region, should now act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on hourly/daily charts haven’t been supportive of any firm near-term direction. This, in turn, warrants some caution before placing any aggressive bets ahead of the Jackson Hole Symposium.
That said, sustained weakness below the daily lows might turn the commodity vulnerable to accelerate the fall further towards the $1911 intermediate support. The downfall could further get extended back towards the $1900 mark.
On the flip side, bulls are likely to wait for some follow-through strength beyond the $1960-62 region, above which the commodity is likely to accelerate the momentum further towards the key $2000 psychological mark.
Gold 1-hourly chart
Technical levels to watch