Fortnight-old bearish channel keeps gold sellers hopeful
Gold extends pullback from 50-SMA and the upper line of the 12-day-long descending trend channel as sellers flirt with the $1,695. That said, the downward sloping RSI, not oversold, adds strength to the bearish bias targeting the latest swing low, around $1,688. However, the yearly low, marked in July at around $1,680, will precede the stated channel’s bottom, close to $1,670, to challenge the sellers afterward.
Meanwhile, recovery remains elusive until the gold price remains below the $1,723-25 resistance confluence including the 50-SMA and the channel’s top. Following that, the 61.8% Fibonacci retracement of July-August upside, near $1,730, could probe the XAUUSD bulls before giving them control. In that case, the tops marked during August 25 and 10, respectively near $1,765 and $1,807, will be the focus. Also acting as the upside barrier is the $1,800 threshold.
