- Gold reversed an intraday dip to 100-hour EMA, around the $1882-81 region.
- Mixed oscillators on hourly/daily charts warrant some caution for bullish traders.
- Any further move up might be seen as a selling opportunity amid stronger USD.
Gold attracted some dip-buying near 100-hour EMA and rallied back closer to the top end of its daily trading range during the early North American session. Bulls might now be looking to build on the momentum further beyond the key $1900 barrier.
The mentioned level marks a previous strong horizontal support breakpoint, which if cleared decisively might trigger some aggressive short-covering move. The XAU/USD might then accelerate the recovery momentum further towards the $1925 resistance zone.
Bullish technical indicators on hourly charts reinforce the constructive outlook. However, oscillators on the daily chart are yet to confirm the bullish bias and warrant some caution before positioning aggressively for any further appreciating move.
Hence, any subsequent move up might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly amid some renewed US dollar buying interest, which tends to undermine demand for the dollar-denominated commodity.
On the flip side, a sustained break below the $1882-80 region (100-hour EMA) will set the stage for an extension of the recent downward trajectory. Bearish traders might drag the commodity back towards challenging 100-day SMA support, around the $1849-48 region.
Gold 1-hourly chart
Technical levels to watch