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MTrading Team • 2023-12-27

Gold price fades upside momentum within bullish channel

Gold price fades upside momentum within bullish channel

Gold price snaps a three-day winning streak within a fortnight-old rising trend channel while positing mild losses near $2,065 during early Wednesday. In doing so, the XAUUSD justifies the overbought RSI (14) line and the sluggish MACD signals. However, the pullback moves remain elusive unless breaking the $2,042-41 support confluence comprising the stated channel’s bottom line, 50-SMA and the early month’s peak. Following that, a quick fall toward the $2,000 psychological magnet appears imminent while the monthly low surrounding the 78.6% Fibonacci retracement of the November-December upside, near $1,977, will restrict the quote’s further downside. In a case where the bullion sellers keep control past $1,977, the previous monthly low of around $1,930 will be on their radars.

Meanwhile, the previously stated bullish channel’s top line, close to $2,080 at the latest, challenges the Gold buyer’s re-entry ahead of the $2,100 round figure. It should be noted that the overbought RSI and sluggish MACD will join the $2,100 to offer a tough fight to the bulls afterward. However, the metal’s successful trading beyond the $2,100 will allow the XAUUSD bulls to cross the latest peak surrounding $2,150 while aiming for the $2,200 threshold.

Overall, the Gold buyers are running out of steam and hence allow the XAUUSD to retreat. Even so, the precious metal’s bullish trend remains intact.

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