Technical Analysis: Gold pulls back from the 18-day top even as China reopens after holidays
With the US dollar consolidating Friday's heavy losses, Gold fails to cheer downbeat performances of Chinese markets as they reopen after the Lunar New Year holidays for the first since January 23. Even so, the yellow metal stays inside a monthly rising trend channel, having support at $1,562.50. Even if the bullion defies the channel formation with a downside break, 200-bar SMA near $1,538 and 61.8% Fibonacci retracement near $1,516 will challenge the sellers.
Meanwhile, an upside clearance of the channel's resistance, at $1,598, needs confirmation from $1,600 mark to aim for January month's top near $1,612. It should bear in mind that the safe-haven's rise above $1,612 will not think twice before challenging the early 2013 high around $1,700.