Technical Analysis: Gold sellers should stay hopeful below $1,875

Technical Analysis: Gold sellers should stay hopeful below $1,875

Although gold buyers are primed for breaking the five-week-old resistance line, the recent tops near $1,848-49, as well as 200-bar SMA near $1,863, stay ready to test the upside momentum. Also acting as the key resistance is the area surrounding $1,875 that comprises the late January highs. It should, however, be noted that a clear upside break of $1,875 will not only help gold bulls to overcome the $1,900 but will also direct them toward the previous monthly peak near $1,960.

On the downside, $1,813 and the $1,800 round-figure can entertain short-term gold sellers. Though, any further weakness below $1,800 will not hesitate to challenge the month’s low surrounding $1,785. It’s worth mentioning that the November 2020 lows and May 2020 high offer the key support area of around $1,765. Overall, gold is yet to convince the bulls.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.