- Gold meets with some fresh supply and reverses Friday’s positive move.
- Bears are likely to wait for a sustained break below $1527-26 region.
Gold maintained its offered tone through the mid-European session on Monday, albeit bulls showed some resilience below the $1550 region, or 100-hour SMA.
The mentioned region coincides with 38.2% Fibonacci level of the $1470-$1611 positive move and should now act as a key pivotal point for short-term traders.
Below the mentioned support, the metal might accelerate the slide towards testing 61.8% Fibonacci level of the $1470-$1611 positive move, around the $1527-26 region.
Meanwhile, mixed technical indicators on hourly/daily charts haven’t been supportive of any firm direction and warrant some caution before placing any aggressive bets.
Hence, it will be prudent to wait for some strong follow-through selling before positioning for an extension of the commodity’s recent pullback from multi-year tops.
On the upside, immediate resistance is pegged near the $1560 region (38.2% Fibo. level), above which the momentum could get extended towards the $1572 horizontal zone.