Technical Analysis: Gold bears need a clear break of $1,764 to keep the reins

Technical Analysis: Gold bears need a clear break of $1,764 to keep the reins

Following its failure to break the November 2020 bottom, gold prices finally slipped to the lowest since July during early Friday. However, the metal bounced off quickly from the $1,760.55 low and remains sluggish off-late. This suggests the bulls’ inability to cheer the oversold RSI conditions while bears also await confirmation. As a result, a clear break below $1,764 becomes necessary for gold sellers to eye April 2020 peak surrounding $1,748. However, any further weakness will end-up meeting June’s low of $1,670 wherein the $1,700 can play the role of a buffer.

Meanwhile, corrective pullback needs to cross the February 04 low near $1,785 before challenging the $1,800 threshold. Though, any further upside will have to cross a six-week-old resistance line, at $1,825 now, before trying to conquer the 200-day SMA level of $1,857. Overall, gold bears are likely to remain dominant for a while but not without corrections.

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