Gold Price Analysis: Sustained move beyond 200-hour SMA sets the stage for further gains
- Gold regains some positive traction and moves closer to weekly tops.
- The set-up favours bulls and support prospects for additional gains.
Gold edged higher through the mid-European session on Friday and is currently placed near the top end of its weekly trading range, around the $1560 region.
A sustained move back above 200-hour SMA was seen as a key trigger for intraday bullish traders and might have paved the way for a further appreciating move.
Oscillators on the daily chart maintained their bullish bias and have again started gaining positive traction on hourly charts, adding credence to the constructive outlook.
Some follow-through buying will reaffirm the bullish bias and set the stage for a move towards the top end of a four-day-old ascending trend-channel, around the $1565 region.
On the flip side, immediate support is pegged near the $1555 region (200-hour SMA), which if broken might accelerate the slide towards the $1550 region (trend-channel support).
A sustained break below the trend-channel support will negate prospects for any near-term recovery and set the stage for an extension of the recent pullback from multi-year tops.
Gold 1-hourly chart