Gold bears flex muscles on a big day
Be it the March PMIs or US Durable Goods Orders, not to forget the key NATO meeting, Thursday has it all to trigger market volatility. Gold has already printed a bear cross but the 200-SMA has been defending bulls so far, suggesting a tough fight between the buyers and sellers. However, lower-high formation since the early days of March, as well as sluggish MACD and gradually picking up RSI, keeps sellers hopeful of witnessing a break of the 200-SMA support, around $1,910. Following that, the monthly low and late February’s bottom, respectively around $1,895 and $1,878, will act as validation points for the bear’s entry.
On the contrary, a clear upside break of the 100-SMA level surrounding $1,955 will escalate the gold prices towards the previous month’s peak near $1,975. Though, the $2,000 threshold and 23.6% Fibonacci retracement of January-March upside around $2,002 will challenge the metal buyers. In a case where the bullion prices remain firm past $2,002, the quote can confront the $2,040 hurdle with hopes of challenging the monthly peak of $2,071.
To sum up, gold sellers slowly grip the prices ahead of the key data/events but it all depends more on fundamentals, making it necessary for traders to remain cautious.
