Technical Analysis: Gold wavers in a choppy range inside key SMAs, bears stay hopeful

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.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.