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Angelina Morozova • 2021-05-14

Technical Analysis: Gold sellers should wait for $1,797 breakdown

Technical Analysis: Gold sellers should wait for $1,797 breakdown

Although gold buys are hesitant amid reflation fears, the bullion bears have miles to go. Among the challenges, the latest recovery moves toward a short-term resistance line near $1,835 become the first factor to reject the bears. Following that, the resistance line of a two-month-old rising channel's resistance line near $1,858 will be the key hurdle. Should gold buyers keep reins past $1,858, a run-up towards late January tops near $1,875 and then to the $1,900 threshold can't be ruled out.

Meanwhile, the support line of the stated channel, 100-SMA and April’s top near $1,797 becomes the tough nut to crack for gold sellers, likely teased on the downside break of $1,810. It should be noted that early April tops and two-week bottom can act as extra support around $1,758-57 during the quote’s fall below $1,797. Though, a clear weakness under $1,757 could easily direct the bears to sub-$1,700 area.

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