Gold Price Analysis: Better bid, but remains in bearish territory below $1,594
- Gold is reporting gains as the dollar is trading in a sideways manner.
- A break above $1,594 is needed to invalidate the bearish outlook.
Gold is currently trading near $1,585 per ounce, representing a 0.55% gain on the day, having hit a low of $1,566 in the overnight trade.
The yellow metal is flashing green alongside a mixed action in the Asian stocks. While Australia's ASX 200 index is up more than 3 percent, stocks in Japan, Hong Kong are trading in the red. Meanwhile, South Korea's Kospi is flat-lined and the shanghai Composite index is adding nearly 0.70 percent.
Meanwhile, the dollar index, gold's biggest nemesis, is sidelined near 99.0, having faced rejection near 100.00 on Tuesday. The index topped out near 103.00 on March 20.
From a technical analysis standpoint, the yellow metal continues to trade below the double top neckline level of $1,594. The bias, therefore, remains bearish. The breakdown confirmed during Tuesday's US trading hours suggests scope for a drop to $1,548.
The bearish case would be invalidated if prices establish a secure foothold above $1,594.