Gold edged lower during the Asian session on Monday, though the downside remains cushioned. As FXstreet’s Haresh Menghani notes, XAU/USD range play is intact.

$1,924 seems to protect the immediate downside

“The range-bound price action could be categorized as a bearish consolidation phase. That said, repeated failures to find acceptance below the $1,900 mark and the subsequent move up favour bullish traders.”

“The mixed technical setup makes it prudent to wait for a sustained break through the near-term trading range before placing aggressive directional bets.”

“Momentum beyond the $1,950 level is likely to confront resistance near the $1,964-$1,966 region. Sustained strength beyond should provide an additional lift to gold prices and allow bulls to aim back to reclaim the $2,000 psychological mark.”

“The $1,924 horizontal zone now seems to protect the immediate downside ahead of the $1,915 region. This is followed by the $1,900-$1,890 strong support, which if broken decisively would set the stage for a slide towards the next relevant support near the $1,872-$1.870 zone.”

This article was originally published by the original article here.


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