Gold Price Analysis: Bulls eyeing a sustained move beyond 61.8% Fibo. level
- Gold seemed struggling to build on its intraday positive move.
- The technical set-up seems tilted in favour of bullish traders.
Gold failed to capitalize on its early uptick and for now, seems to have stalled near a resistance marked by the 61.8% Fibonacci level of the recent pullback from multi-year highs – around the $1612 region – to the $1536 level.
Given this week's rebound from a previous strong resistance, now turned support near the $1563-62 region, the near-term set-up seems tilted in favour of bullish traders and support prospects for a further near-term appreciating move.
The mentioned support also nears 38.2% Fibo. level and should now act as a key pivotal point for the commodity's near-term direction. Meanwhile, bullish technical indicators on hourly/daily charts further add credence to the constructive outlook.
However, traders are likely to wait for a sustained move beyond the mentioned hurdle before positioning for a move towards reclaiming the $1600 round-figure mark en-route the recent swing high resistance near the $1612 region.
Gold 4-hourly chart