Technical Analysis: Gold struggles between 100-EMA, September low
Gold prices consolidate the heaviest drop in three months, marked on Monday, below 100-day EMA, at $1,875 now. However, a horizontal line comprising September's low near $1,847 restricts the bullion's short-term moves. Considering the weak RSI conditions, the latest lack of momentum is likely to persist for a few more days unless clearing any of the two hurdles mentioned above. Though, multiple upside barriers like the $1,900 round-figure and October top surrounding $1,933 can challenge the bulls, before directing them to the monthly peak near $1,965.
Alternatively, a downside break below $1,847 will probe 61.8% Fibonacci retracement level of $1,825 and the early-July high of $1,817.89 to please the metal bears. It should, however, be noted that the anticipated oversold RSI conditions around then could challenge the gold sellers near $1,817, if not then the $1,800 threshold may return to the chart. Moreover, the commodity's weakness past-$1,800 will drag it towards July's low close to $1,790.