MTradingGlobal

Gold bears step-back but not out below $1,765

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold’s rebound from four-month low struggles around previous supports but the MACD recently flashed bearish signals and the RSI isn’t oversold as well. Hence, buyers are likely to remain unconvinced below the November 2020 bottom surrounding $1,765, a break of which could quickly recall the $1,800 threshold. Though, multiple stops around $1,833 could challenge the gold buyers afterward. In a case where the bulls dominate past $1,833, May’s peak surrounding $1,916 should return to the charts.

Meanwhile, 100-SMA on the weekly chart, around $1,735, restricts immediate declines of the quote. Following that, the yearly low surrounding $1,676 will be the key as a break of which will open the door for the metal’s further weakness towards 50% Fibonacci retracement level of August 2018-2020 upside, near $1,615. During the commodity’s weakness past $1,615, August-September 2019 highs, around $1,555, will precede the 200-SMA level of $1,517 and the $1,500 round figure to challenge the gold bears.

Comments