Technical Analysis: $1,761 holds the key to Gold’s further upside
Gold refreshed six-week top the previous day but failed to cross a downward sloping trend line from January-end, not to forget 50-DMA. Given the easing bearish bias of MACD and strong RSI conditions back the yellow metal’s confirmation of “double bottom” bullish chart pattern, by a daily closing beyond March 18 top, the bullion is likely to recover. Though, a clear break above $1,761 becomes necessary to lure the precious metal buyers. Following that, an early February low near $1,785 should return to the charts.
If at all the pullback defy the latest breakout, via daily close beneath $1,755, the commodity’s drop to $1,715 becomes imminent. However, the bullion’s further downside will be questioned by the $1,700 threshold, a break of which will again highlight the $1,678-76 horizontal support zone. Overall, gold needs an upside push to consolidate losses from early January, which in turn could magnify the market’s reaction to the estimated run-up beyond $1,761.