Gold Price Analysis: Stuck in a range around $1700 mark, downside seems limited

• Gold seesawed between tepid gains/minor losses through the mid-European session.
• The set-up supports prospects for the emergence of some dip-buying and favours bulls.

Gold extended its two-way/directionless trading action for the second consecutive session on Tuesday and remained confined in a $20 trading range around the $1700 mark.

Bulls have been repeatedly failed to build on the attempted intraday positive move beyond 200-hour SMA, while the downside remained limited near the $1690 support area.

Meanwhile, neutral technical indicators on hourly charts haven't been supportive of any firm intraday direction, albeit positive oscillators on the daily chart favour bulls.

The technical set-up supports prospects for the emergence of some dip-buying near the $1690 horizontal level and a move towards testing the $1720-22 supply zone.

This is followed by resistance near the $1730 region, above which the commodity seems all set to head back towards challenging multi-year tops, around the $1748 region.

On the flip side, a sustained break through the mentioned support might negate the constructive outlook and turn the commodity vulnerable to accelerate the slide towards the $1670 level.

Some follow-through selling has the potential to drag the yellow metal further towards the $1660 area, which, if broken decisively, should be seen as a fresh trigger for bearish traders.

Gold 1-hourly chart

Technical levels to watch