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Gold Price Analysis: Steadily climbs to session tops, inching closer to $1670 level

  • Gold regains traction and recovers a major part of the overnight downfall.
  • The set-up support prospects for the resumption of the previous uptrend.

Gold regained some positive traction on Wednesday and for now, seems to have snapped two consecutive days of losing streak. The precious metal recovered a major part of the overnight slide to the $1642 support area, which coincides with 200-hour SMA and should act as a key pivotal point for short-term traders.

Currently placed near session tops, around the $1667-68 region, the commodity is now be looking to extend the momentum further beyond 100-hour SMA. Meanwhile, technical indicators on the 1-hourly chart have just started moving in the positive territory and further support prospects for additional gains.

Meanwhile, oscillators on 4-hourly/daily charts – though have been correcting from higher levels – are still holding in the bullish territory. A subsequent move beyond the $1673 horizontal resistance will add credence to the constructive set-up and set the stage for the resumption of the recent bullish trajectory.

Above the mentioned barrier, bulls are likely to aim back towards the $1700 mark amid a fresh leg down in the equity markets and the US Treasury bond yields, which tend to underpin demand for the non-yielding yellow metal's perceived safe-haven demand.

Gold 1-hourly chart

fxsoriginal

Technical levels to watch

 

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