Technical Analysis: Gold marks another hesitant battle with 200-DMA

Technical Analysis: Gold marks another hesitant battle with 200-DMA

Gold's reluctance to close below an ascending trend line from March enables it to confront a 200-day moving average (DMA). However, the RSI conditions as well as the one-week-old lower high pattern favor the sellers. As a result, gold bears are targeting a fresh move below the previously stated support line, at $1,820 now, to revisit the 1,800 threshold. Though, their major attention will be on November low near $1,764.

Meanwhile, an upside clearance of 200-DMA of $1,844 will eye the previous week’s top surrounding $1,865 as nearby resistance. In a case where the yellow metal remains bullish past-$1,865, the $1,900 round-figure, multiple hurdles around $1,930/35 and a falling trend line from September, currently near $1,957, will be the key to watch. Overall, gold prices are likely to remain bullish for longer-term but short-term consolidation of the previous month’s gains can’t be ruled out.

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