Fundamental Descriptions: Gold was up on Tuesday morning in Asia. The dollar was up, stabilizing after its fall during the previous session that helped boost the yellow metal to its highest point in two weeks. The bright metal took advantage of the dollar sell-off and built on the previous week’s recovery rally from four-month lows of $1787. However, the risk-on flows-driven rebound in the Wall Street indices, as well as, the US Treasury yields recalled gold sellers, which dragged the rates from multi-day highs.
Technical View: The near-term technical outlook for the metal remains more or less the same. Gold bulls are challenging the 21-Daily Moving Average (DMA) hurdle at $1,857, having failed to hold ground above the latter. Daily closing above the latter is needed to confirm a bullish reversal, exposing the additional upside towards the mildly bullish 100-DMA at $1,885. Ahead of that the $1,870 round figure could challenge the bearish commitments. The 14-day Relative Strength Index (RSI) is testing the midline, currently standing at 46.25, justifying the bullish bias in the price.
Alternate view: The immediate support is seen at the $1,850 psychological level. Sellers will then look out for the horizontal flattish 200-DMA at $1,839.
Technical View: The near-term technical outlook for the metal remains more or less the same. Gold bulls are challenging the 21-Daily Moving Average (DMA) hurdle at $1,857, having failed to hold ground above the latter. Daily closing above the latter is needed to confirm a bullish reversal, exposing the additional upside towards the mildly bullish 100-DMA at $1,885. Ahead of that the $1,870 round figure could challenge the bearish commitments. The 14-day Relative Strength Index (RSI) is testing the midline, currently standing at 46.25, justifying the bullish bias in the price.
Alternate view: The immediate support is seen at the $1,850 psychological level. Sellers will then look out for the horizontal flattish 200-DMA at $1,839.