Gold Technical Analysis
Publish Date : 2019/10/01 - 13:37

We may have possible slide to $1450 support area. Gold held on to its weaker tone through the mid-European session on Tuesday, albeit has managed to recover a major part of the early lost ground to near two-month lows. Oversold conditions on hourly charts seemed to be the only factor that led some intraday short-covering move amid a modest USD pullback from two-year tops.

However, the prevailing risk-on mood, reinforced by a strong upsurge in the US Treasury bond yields amid growing optimism over a possible resolution of the prolonged US-China trade disputes.

Moreover, the overnight slide below an important horizontal support near the $1484-83 region - coinciding with 23.6% Fibonacci level of the $1266-$1557 move up - confirmed a bearish head and shoulders pattern breakdown.

Hence, any further recovery back towards the mentioned support breakpoint, now turned resistance, might still be seen as an opportunity to initiate some fresh bearish positions. The commodity remains vulnerable to slide further towards testing 38.2% Fibo. level support near the $1450-47 region.

Source: FXstreet

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