Gold Technical Analysis: Surrenders early gains to multi-year tops, refreshes daily low

  • Gold retreats from multi-year tops amid fading safe-haven demand.
  • The slide below 61.8% Fibo. might be seen as a key trigger for bears.

Gold extended its steady pullback from multi-year tops and has now retreated to the lower end of its daily trading range, around 61.8% Fibonacci level of the latest leg up from the overnight swing lows.

Extremely overbought conditions on the daily chart seemed to have prompted some aggressive long-unwinding trade amid a dramatic intraday turnaround in the global risk sentiment.

Some follow-through weakness below the $1572 level might now be seen as a key trigger for bearish traders and exert some additional downward pressure on the back of fading safe-haven demand.

The commodity then could accelerate the corrective slide towards testing the $1564 strong horizontal zone before eventually dropping to its next major support near the $1557 region.

On the flip side, the $1580-82 region (50% Fibo. level) now seems to act as an immediate resistance, above which bulls are likely to aim back towards reclaiming the $1600 round-figure mark.

Ahead of the mentioned handle (nearing 23.6% Fibo.) intermediate resistance levels are pegged near the $1589 zone (38.2% Fibo.) and the $1594 region.

Gold 1-hourly chart

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