Gold price recovery lacks momentum within bearish channel
Gold price lacks clear directions after bouncing off the lowest level in five weeks, as well as snapped a two-day losing streak, the previous day. That said, the previous support line stretched from early November guards the immediate upside of the XAUUSD around $2,022. As the RSI (14) line’s recovery joins the impending bulls cross on the MACD to back the precious metal’s rebound, the quote is likely to surpass the nearby hurdle surrounding $2,022. However, the 200-SMA and the top line of a three-week-old bearish channel, respectively near $2,037 and $2,051, will challenge the bullion buyers afterward. In a case where the prices remain firmer past $2,051, the odds of witnessing a quick rally toward the $2,090 horizontal resistance region can’t be ruled out.
Meanwhile, the 61.8% Fibonacci ratio of the metal’s November-December upside, near $2,015, restricts nearby declines in the Gold price. Following that, the aforementioned channel’s bottom line, close to the $2,000 psychological magnet, will precede the previous monthly low of around $1,973 to act as the final defense of the buyers. Should the XAUUSD remain bearish past $1,973, the downside momentum will aim for November’s bottom surrounding $1,930.
Overall, the XAUUSD remains bearish unless it manages to defy the descending trend channel formation backed by the downbeat US Dollar.
