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Technical Analysis: Gold fades upside momentum below $1,730

Having breached a downward sloping trend line from February 23 on Thursday, gold fails to stay positive amid RSI pullback below the key 200-SMA level. Even so, the yellow metal sellers should wait for a clear downside break below the previous resistance line, currently around $1,716, to retake controls. Following that the $1,700 threshold and double bottoms flashed in March around $1,675 will be crucial to watch.

Meanwhile, an upside clearance of 200-SMA, near $1,740, will eye for the two-week-old horizontal resistance near $1,760. Also acting as an upside barrier is the November 2020 low near $1,765, a sustained break of which could confirm the yellow metal’s run-up towards late February tops surrounding $1,815.

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