Gold Price Analysis: Climbs back closer to weekly tops, around $1650 region

• Gold gains traction near 200-hour SMA/ascending trend-line confluence support.
• The technical set-up seems tilted in favour of bullish traders amid softer risk tone.

Gold edged higher through the mid-European session on Thursday and is currently placed near the top end of a two-day-old trading range, just below the $1650-51 region.

The recent positive move has been along a short-term ascending trend-line, which now coincides with 200-hour SMA and should act as a key pivotal point for traders.

Meanwhile, oscillators on the 1-hourly chart have just started gaining traction and support prospects for additional gains amid some renewed weakness in equity markets.

The near-term construction outlook is further reinforced by the fact that technical indicators on 4-hourly/daily charts have been holding comfortably in the bullish territory.

However, it will be prudent to wait for a sustained strength above weekly swing high resistance near the $1652-53 region, before positioning for any further appreciation.

Above the mentioned barrier, the commodity is likely to surpass the $1660 supply zone and aim back towards challenging multi-year tops, around the $1689 region.

Gold 1-hourly chart

Technical levels to watch