- Gold turned positive for the second straight session on Monday.
- Overcoming the $ 1,820 confluence supports prospects for higher earnings.
- The mixed oscillators on the hourly / daily charts warrant caution for bullish traders.
Gold drew some buying on the dips near the $ 1,808 area and turned positive for the second straight session on Monday. The rally pushed the commodity to two-day highs around the $ 1,823 region during the mid-European session.
With the latest bullish move, the XAU / USD It has now found acceptance above the $ 1,820 confluence hurdle, which comprises the 38.2% Fibonacci level of the recent $ 1,876 – $ 1,785 drop and the 100 hourly SMA. A sustained move further could have already set the stage for an extension of the ongoing recovery from the two-month lows set last Thursday.
Meanwhile, the technical indicators on the 1-hour chart have been gaining positive traction and have only just started to move into the bullish territory on the 4-hour chart. The setup supports the prospects for additional intraday gains, although the bearish oscillators on the daily chart warrant caution for aggressive bull traders.
Therefore, the recovery momentum could face stiff resistance and remain capped near a strong previous horizontal support break point near the $ 1830 region. Any subsequent rally risks fading quickly near 61.8%. Fibonacci. level, around the $ 1840-42 zone, which should act as a key point for short-term traders.
On the other hand, the 23.6% Fibonacci level, just before $ 1,800, now appears to have emerged as immediate support. If the aforementioned support level is not defended, the XAU / USD could become vulnerable to accelerate the decline and once again challenge the support from last week’s swinging lows, around the $ 1785 region.
1 hour chart
Technical levels
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