Weekly resistance test gold buyers ahead of ECB, US GDP
Gold extends the bounce off monthly support while picking up the bids near $1,801 during the early Thursday. In doing so, the yellow metal pokes a one-week-old descending resistance line inside a one-month-long rising channel bullish formation. Also keeping the gold buyers hopeful is the quote’s sustained trading beyond 200-SMA and firmer oscillators. Hence, the commodity is likely to overcome the immediate hurdle surrounding $1,801 to aim for 78.6% Fibonacci retracement of September’s fall, near $1,810. It should be noted, however, that the stated channel’s resistance line and the last month’s top, respectively around $1,830 and $1,834 will probe the bulls afterward.
Meanwhile, risk-off mood post the US GDP and ECB outcomes could direct the gold sellers towards challenging the bullish chart pattern by hammering $1,787 support. Should prices remain weak past $1,787, the 200-SMA level of $1,770 may probe the bears. It’s worth noting that multiple supports around $1,750, comprising 23.6% Fibonacci retracement level, will challenge the further downside before eyeing the last month’s bottom close to $1,721. To sum up, gold has a smooth run-up on the north but the fears of tighter monetary policy poke the bulls.
Meanwhile, risk-off mood post the US GDP and ECB outcomes could direct the gold sellers towards challenging the bullish chart pattern by hammering $1,787 support. Should prices remain weak past $1,787, the 200-SMA level of $1,770 may probe the bears. It’s worth noting that multiple supports around $1,750, comprising 23.6% Fibonacci retracement level, will challenge the further downside before eyeing the last month’s bottom close to $1,721. To sum up, gold has a smooth run-up on the north but the fears of tighter monetary policy poke the bulls.