- Gold has seen some intraday recovery from the month-long lows hit during the Asian session on Monday.
- The lack of solid continuation buying suggests that the downtrend is not over yet.
- Any significant strength above the $ 1,860 hurdle could be seen as a selling opportunity.
Gold has halted its recent bearish move to more than a month lows and made a nice intraday bounce from near the $ 1,820 support area. At the time of writing, the yellow metal is trading near the $ 1,833 level after being capped around the $ 1,855 region.
Given Friday’s bearish break below the rising wedge support, the short-term bias appears to be tilted in favor of the bears. Furthermore, the inability of gold to capitalize on the recovery attempt suggests that the downtrend may still be far from over.
Meanwhile, technical indicators on the daily chart have started to move into negative territory and add credibility to the bearish outlook. Therefore, any subsequent rally could still be seen as an opportunity to initiate new downside positions.
The XAU / USD looks vulnerable to breaking the $ 1,820 support zone and challenging the round $ 1,800 level. Some subsequent selling has the potential to drag the yellow metal towards end-November support lows around the $ 1,764 region.
On the other hand, any significant strength above the immediate resistance at $ 1,860-62 is likely to face stiff resistance near the horizontal zone of $ 1,885. This, in turn, should limit XAU / USD below the round level of $ 1,900.
4 hour chart gold
Gold technical levels
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