Gold technical analysis: Range play intact amid trade optimism

• Gold remains trapped in a sideways channel for a fifth straight week. 
• The hourly chart shows scope for a re-test of $1,500.

Gold is currently trading at $1,506 per Oz, representing a 0.17% gain on the day, having faced rejection at highs near $1,515 on Monday.

Prices remain trapped in $1,520-$1,475 range for the fifth straight week. The US and China are closing on the phase-one of a trade deal and forcing a breakout is going to be a tough task for the yellow metal bulls.

Currently, the hourly chart relative strength index is reporting bearish conditions with a below-50 print and the MACD histogram is producing deeper bars below the zero line, signaling strengthening bearish momentum.

Gold, therefore, risks extending losses to the hourly chart support at $1,503 in the next few hours. A violation there would expose the psychological support of $1,500 (200-hour MA).

The outlook as per the hourly chart would turn bullish if prices invalidate the lower highs setup with a move above $1,510.

Daily chart

Trend: Neutral-to-bearish

Technical levels