Gold Price broke a one-month-old rising support line, now immediate resistance near $1,963, and helped bears cheer the first weekly loss in four. However, the 200-SMA joined the oversold conditions of the Relative Strength Index (RSI) line, placed at 14, to trigger the metal’s corrective bounce afterward.
However, the recovery moves also gain support from an impending bull cross on the Moving Average Convergence and Divergence (MACD) indicator.
Even so, a clear upside break of the aforementioned support-turned-resistance surrounding $1,960-65 becomes necessary to convince the Gold buyers.
Following that, a 10-week-old horizontal resistance of around $1,985 will act as the final defense of the XAU/USD bears.
On the contrary, the Gold Price pullback remains elusive beyond the 200-SMA level of near $1,942.
In a case where the XAU/USD remains bearish past $1,942, multiple levels around $1,930 and $1,900 round figure may test the Gold bears before directing them to the previous monthly low of around $1,893.
Overall, Gold Price lacks bullish bias but the bears need validation from $1,942 to retake control.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now