Gold fails to extend the post-ECB rebound from yearly low, not to mention unable to extend the bearish channel breakout. Given the metal’s sustained trading below the key SMA and the recently downbeat oscillators, the bullion is likely to remain pressured. Hence, sellers can see the latest bounce as an opportunity until the quote stays below the 100-SMA level surrounding $1,745. Following that, a downward sloping resistance line from June 13 and a horizontal area from mid-May, respectively around $1,768 and $1,785-87, will be the final defenses for bears.
On the contrary, pullback moves could aim for the two-week-old descending trend channel’s upper line, previous resistance around $1,708 before the $1,700 threshold and the latest lows lows surrounding $1,680 can entertain gold bears. It’s worth noting, however, that the aforementioned channel’s support line, at $1,668 by the press time, will precede the mid-April 2020 low near $1,660 to challenge the metal’s further downside.
Overall, gold bears remain in the driver’s seat despite the corrective pullback as traders brace for July’s PMIs and July 26-27 Fed meeting.
