Having reversed from early November’s swing high, gold broke the key support around $1,795 comprising 200-SMA and a 13-day-old ascending trend line. The downside move gains support from bearish MACD signal to direct gold bears towards a two-month-old horizontal region surrounding $1,760. However, RSI does approach the oversold territory and can trigger intermediate bounces off $1,780. It’s worth noting that gold’s selling past $1,760 won’t hesitate to refresh December lows around $1,751.
Alternatively, a corrective pullback beyond $1,795, will need validation from the $1,800 threshold to rise further. Further, $1,820 and the monthly peak surrounding $1,832 can test the bulls. Additionally, tops marked in July and September 2021 near $1,834 will precede the $1,850 round figure to challenge the metal’s further upside ahead of pushing bulls towards November’s peak of $1,877. Overall, gold sellers have sneaked in before the key US data but it all depends upon how well the US Nonfarm Payrolls (NFP) justify hawkish hopes raised by FOMC Minutes.
