Gold keeps the bounce off 23.6% Fibonacci retracement of November-December fall to cross the 100-SMA surrounding $1,805, backed by firmer RSI and higher-low formation. As MACD is also shifting in favor of the bulls, the metal prices are likely heading towards 61.8% Fibo. level near $1,830. However, a two-month-old horizontal resistance and tops marked during the July-September period, around $1,834, will be tough challenges for the gold bulls to cross before convincing markets. Hence, a short-term upward trajectory is brewing ahead of the key data.
Meanwhile, a downside break of the weekly support line, around $1,795 at the latest, will trigger a fresh round of gold-selling towards the recent swing low of $1,787. Though, any further weakness will be challenged by multiple supports marked since early November close to $1,760. If at all the gold bears keep reins past $1,760, December’s bottom of $1,751 will act as the last hope for buyers before throwing dice for sellers targeting September’s low surrounding $1,721.
Meanwhile, a downside break of the weekly support line, around $1,795 at the latest, will trigger a fresh round of gold-selling towards the recent swing low of $1,787. Though, any further weakness will be challenged by multiple supports marked since early November close to $1,760. If at all the gold bears keep reins past $1,760, December’s bottom of $1,751 will act as the last hope for buyers before throwing dice for sellers targeting September’s low surrounding $1,721.