Gold sellers flex muscles around mid-$1,600s
Although a one-week-old ascending trend line challenges gold bears of late, repeated failures to cross the 200-SMA signals further hardships for buyers. Even if the quote rises past the 200-SMA hurdle of $1,668, the 50% Fibonacci retracement of the metal’s late August-September downturn, around $1,690, appears a tough nut to crack for the bulls. Additionally, the 61.8% Fibonacci retracement, also known as the golden ratio, and the monthly peak could act as extra filters to the north around $1,710 and $1,730 in that order.
Meanwhile, fresh selling could begin on a clear downside break of the stated weekly support line, close to $1,658 at the latest. Following that, the $1,640 could act as the immediate level to watch for the bears. However, the monthly horizontal support area near $1,620 will be a strong challenge for the sellers, a break of which could quickly drag gold prices to the $1,600 round figure while any further south-run won’t hesitate to challenge the April 2020 low near $1,572.
Overall, gold remains on the bear’s radar but the fresh selling should wait for a $1,658 breakdown.
Meanwhile, fresh selling could begin on a clear downside break of the stated weekly support line, close to $1,658 at the latest. Following that, the $1,640 could act as the immediate level to watch for the bears. However, the monthly horizontal support area near $1,620 will be a strong challenge for the sellers, a break of which could quickly drag gold prices to the $1,600 round figure while any further south-run won’t hesitate to challenge the April 2020 low near $1,572.
Overall, gold remains on the bear’s radar but the fresh selling should wait for a $1,658 breakdown.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.