Chart Of The Day: Gold aims for further downside on the break of key support-line

Tue, 01 Oct 2019 13:21

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Following its break of multi-month old support-line, not to forget sustained trading below 50-day SMA, Gold prices are likely to witness additional downside pressure towards $1,450/48 area including mid-July to early-August tops and 38.2% Fibonacci retracement. It should, however, be noted that oversold RSI might stop pair's further declines, if not then 100-day SMA level of $1,426 could lure sellers.

During the pullback, $1,485 can act as an immediate resistance ahead of $1,495 confluence including 50-day SMA and support-turned-resistance line. If at all the yellow metal grows beyond $1,495, also clears $1,500 round-figure, bulls targeting $1,536 and $1,556 could come back to power.

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