Gold sellers cheer bear cross, key support break below $1,800
Despite bouncing off a four-week low, gold prices are vulnerable to further downside as sustained trading below the two-month-old support line, now resistance, joins the bearish cross-over of the 200-SMA to 50-DMA. That said, 78.6% Fibonacci retracement (Fibo.) of September-November upside, near $1,755, may restrict short-term declines of the yellow metal ahead of September’s low near $1,721. It’s worth noting that a clear downside break of the $1,721 needs validation from the $1,717 level before challenging the $1,700 threshold.
Meanwhile, gold traders are consolidating the previous day’s losses ahead of the key US ISM Manufacturing PMI and ADP Employment Change data, not to forget Fed Chair Powell’s testimony. Should the US catalysts join anxiety over Omicron to weigh on risk catalysts and the US dollar, gold prices can extend the latest corrective pullback towards the previous support line near $1,787. However, a five-week-old horizontal area surrounding $1,810 will be a tough nut to crack for the gold buyers afterward.
Meanwhile, gold traders are consolidating the previous day’s losses ahead of the key US ISM Manufacturing PMI and ADP Employment Change data, not to forget Fed Chair Powell’s testimony. Should the US catalysts join anxiety over Omicron to weigh on risk catalysts and the US dollar, gold prices can extend the latest corrective pullback towards the previous support line near $1,787. However, a five-week-old horizontal area surrounding $1,810 will be a tough nut to crack for the gold buyers afterward.