Gold braces for a bumpy road to $1,877
Gold buyers cheer a clear break of the 23.6% Fibonacci retracement (Fibo.) of August-November 2021, backed by a firmer oscillator, to brace for November’s peak of $1,877. However, multiple lows marked during mid-November around $1,850 will challenge immediate upside. Following that, the upper line of a five-week-old ascending trend channel, near $1,856, will act as an extra filter to the north. It’s worth observing that the metal’s upside past $1,877 will be tested by the RSI conditions, if not then the $1,900 threshold will welcome the bulls.
On the contrary, pullback moves remain elusive beyond the 23.6% Fibo. level of $1,830, a break of which will direct gold sellers to the 200-DMA level of $1,804. It should be noted, however, that the key moving average’s failures to defend the gold buyers will have another chance in the form of the stated channel’s support line, at $1,798, breaking of which won’t hesitate to open the door for sellers targeting December’s bottom surrounding $1,753.
