Technical Analysis: Gold bounces off 21-day EMA, but stays below near-term key resistance
Gold prices fail to extend the bounce off 21-day EMA as a horizontal area since March 09, around $1,702/07 restricts the bullion's immediate upside amid broad US dollar strength. As a result, another pullback to a 21-day EMA level of $1,660 can't be ruled out. Though, late-March high surrounding $1,645 and 50-day SMA close to $1,623 could check the sellers afterward.
On the contrary, risk sentiment remains heavy and a fresh downside by the US dollar could escalate the yellow metal's recovery moves beyond $1,707. In doing so, the recent tops near $1,748 as well as $1,750 might offer breathing space to the bulls ahead of pushing them towards October 2012 to near $1,796.