Gold Silver MCX: What Happened Blasted or Not, Gold spot attracted some dip-buying near the $1808 area and turned positive for the second consecutive session on Monday. The uptick pushed the commodity to two-day tops, around the $1823 region during the mid-European session.
With the latest leg up, the XAU/USD has now found acceptance above the $1820 confluence hurdle – comprising of 38.2% Fibonacci level of the $1876-$1785 recent downfall and 100-hour SMA. A sustained move beyond might have already set the stage for an extension of the ongoing recovery from two-month lows set last Thursday.
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Meanwhile, technical indicators on the 1-hourly chart have been gaining positive traction and have just started moving into the bullish territory on the 4-hourly chart. The set-up supports prospects for additional intraday gains, though bearish oscillators on the daily chart warrant caution for aggressive bullish traders.
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Hence, the recovery momentum might confront stiff resistance and remain capped near a previous strong horizontal support breakpoint near the $1830 region. Any subsequent move up runs the risk of fizzling out rather quickly near the 61.8% Fibo. level, around the $1840-42 zone, which should act as a key pivotal point for short-term traders.
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On the flip side, the 23.6% Fibo. level – just ahead of the $1800 round-figure mark – now seems to have emerged as immediate support. Failure to defend the mentioned support level might turn the XAU/USD vulnerable to accelerate the fall back towards challenging last week’s swing lows support, around the $1785 region.
