Gold ticks lower despite risk-off sentiment

The bullion failed to rise on Thursday, despite massive losses on the stock market and remained stuck in a narrow range, trading near 1,236 USD, still below the critical resistance of 1,242 USD.

The major selling zone is still at around 1,242 USD, where October highs are located and if the price jumps above this level, we could see another leg higher toward the 200-day moving average, which is currently at 1,255 USD. Jumping above this level might confirm the bullish breakout for the next weeks.

The support is currently at 1,230 USD and if taken out, further losses toward the broken trend line at 1,225 USD could happen, with the next bullish bids probably at the 100-day average at 1,210 USD. Gold needs to stay above this trend line to remain with a short-term bullish outlook.

However, the inability to move higher despite the recent sell-off elsewhere is pointing to a possible bearish reversal, if bulls don’t push the price above 1,242 USD quickly.

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