Yesterday, the yellow metal fluctuated between small gains and minor losses through the mid-European session and was last seen trading in the neutral territory, around the $1810 region.
A US dollar rebound from six-week lows was a key factor that capped gains for Gold. Though, a reversal in the risk sentiment extended some support to the safe-haven Gold and helped restrict a downside move.
From a technical viewpoint, XAUUSD has found acceptance above the $1808-15 convergence region. This comprises of 200-hour SMA and the 23.6% Fibonacci level of the $1959-$1760 downfall, which should act as a key pivot point for intraday traders.
Meanwhile, technical indicators on hourly charts are holding in the positive territory but are yet to confirm a bullish bias on the daily chart. This, in turn, warrants some warning for forceful bullish traders and positioning for any further positive move.
On the other hand, weakness below the $1805-07 confluence region, leading to a breakthrough the $1800 mark will negate any near-term positive bias. XAUUSD might then turn at risk to accelerate the slide towards the $1775-72 intermediate support. The downward curve could further get extended and drag the commodity back towards the $1760 region, or seven-month lows touched last Friday.
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