Gold price parked below $1295 hurdle

New York (Nov 24)  Gold extended overnight sideways move through the early European session and remained confined in a narrow trading range below the $1295 supply zone.

A combination of diverging factors, coupled with relatively thin liquidity conditions failed to provide any directional impetus for the commodity. A modest US Dollar recovery, supported by a strong up-move in the US Treasury bond yields was seen capping gains for the dollar-denominated/non-yielding yellow metal.

The downside, however, remained cushioned weaker trading sentiment across European equity markets, which was seen lending some support to the precious metal's safe-haven appeal.

From a technical perspective, the commodity's move over the past 24-hours would still be categorized as consolidative phase amid lack of fresh catalyst. Hence, it would be prudent to wait for a clear break through the trading range before positioning for any near-term directional move.

Technical levels to watch

Bulls would be eyeing for a convincing break through the $1295 barrier, above which the metal seems set to surpass the $1300 handle and aim towards testing its next hurdle near the $1306 region.

On the flip side, $1286-85 area might continue to protect the immediate downside, which if broken could accelerate the slide towards the $1281 region (100-day SMA) en-route $1276-75 strong horizontal support.

FXstreet

 

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