Gold Technical Analysis: Breaks below recent consolidative range, bears likely to aim at $1280 level

   •  Having repeatedly failed to make it through the $1295 supply zone, renewed US-China trade optimism prompted some fresh selling and dragged the precious metal to over one-week lows.

   •  A sustained weakness below 200-hour SMA was seen as a key trigger for intraday bearish traders, with the commodity finally breaking through over one-week-old trading range. 

   •  Technical indicators on the 1-hourly chart have moved on the verge of breaking into oversold territory and seemed to be the only factor holding traders from placing aggressive bets.

   •  However, given the bearish breakdown, negative oscillators on the 4-hourly chart support prospect for an extension of the ongoing downfall back towards testing $1280 level.

   •  Meanwhile, bullish indicators on the daily chart suggest some dip-buying interest at lower levels and should help any subsequent downfall amid dovish Fed expectations.

Gold 1-hourly chart