Technical Analysis: Gold wavers in a choppy range inside key SMAs, bears stay hopeful
Gold sellers eye 50-SMA re-test, currently around $1,800, during the latest weakness below 100-SMA. However, any further downtrend needs to break February 18 low near $1,788 to refresh the monthly low, also the lowest since June 2020, around $1,760. The bearish sentiment takes clues from a monthly resistance line as well as a downward-sloping RSI line. Though, bears have a bumpy road before they break $1,760 support.
On the contrary, an upside break of 100-SMA, at $1,816 now, will have to cross the stated resistance line near $1,830 to recall the short-term gold buyers. However, highs marked during February 10 and late January, respectively close to $1,856 and $1,875, will offer tough nuts to crack for the commodity buyers. During the bullion’s sustained rise past-$1,875, the $1,900 threshold will be the key as it holds the gate for further run-up towards the yearly top of $1,959.41. Overall, gold remains on the back-foot but sellers are cautious ahead of US stimulus voting and Fed Chair Powell’s second session of the testimony.