Technical Analysis: Gold fails to cheer risk-off but bulls remain hopeful above $1693
While the global financial markets witness full-fledged risk aversion on early Friday, Gold fails to justify its safe-haven appeal. The reason is the US dollar's broad strength that goes against the commodities. However, a three-week-old support line, at $1718, followed by the monthly ascending trend line, currently near $1693, keeps the buyers hopeful. If at all the yellow metal drops below $1690, a two-month-old horizontal area around $1640 will be on the bears' radars.
During the pullback, $1741 and the weekly falling trend line near $1749/50 could check the buyers aheadd of pushing them to the monthly top near $1765. In a case where the buyers keep the reins above $1765, 61.8% Fibonacci Expansion (FE) level of $1771 can offer an intermediate halt during the rise towards the year 2012 peak near $1796.