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Denis Sergienko • 2021-02-12

Technical Analysis: Gold extends pullback from 200-day SMA, eyes $1,800

Technical Analysis: Gold extends pullback from 200-day SMA, eyes $1,800

Gold sellers embrace weekly low while declining for the second day in a row, currently down 0.13% around $1,823, during the early Friday. In doing so, the quote extends reversal from 200-day SMA while eyeing further losses towards the key horizontal support around $1,765, tested in November. During the fall, the $1,800 threshold and the monthly bottom around $1,785 can offer intermediate stops. Though, any further weakness past-$1,765, will have multiple supports before reaching June 2020 low near $1,670.

On the upside, gold buyers will remain cautious ahead of breaking the 200-day SMA level of $1,855. Even if the bullion crosses the key SMA, late January peak surrounding $1,875 will precede the $1,900 round-figure and October 2020 high near $1,935 before challenging the yearly top close to $1,960. To sum up, gold is gradually losing the upside bias witnessing during the mid-2020.

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