Gold bears eye $1,760-58 zone ahead of US CPI

Having witnessed rejection from a convergence of the 200-DMA and a support-turned-resistance line from early August, gold traders eye a three-month-old horizontal area surrounding $1,760-58. The bearish bias gets support from MACD and RSI as both these indicators failed to back the early December bounce. It should be noted, however, that the metal’s weakness past $1,758 becomes bumpy as multiple supports around $1,740 and 78.6% Fibonacci retracement (Fibo.) of August-November upside, at $1,721, will challenge the bears afterward.

On the contrary, a successful break of the $1,793 resistance confluence, including the stated DMA and previous support line, will be a strong call to the gold buyers. Following that, $1,815 and September’s high near $1,834 will be in focus. Adding to the upside filters are the multiple lows marked during mid-November near $1,845 and the last month’s peak of $1,877.