Technical Analysis: 50-day SMA probes gold buyers cheering trendline break
While a break of the two-month-old falling resistance line, now support, directs gold buyers toward the mid-September tops near $1,973/74, 50-day SMA challenges the bulls around $1,939. It should, however, be noted that the metal's upside clearance of $1,974 will propel the quote to the previous month's peak surrounding $1,992 and then to the $2,000 psychological magnet. However, any more upside past-2,000 will need to provide a daily close beyond $2,016 to refresh the record high of $2074 and aim for the $2,100 rouns-figure.
Alternatively, a clear downside below the resistance-turned-support line, around $1,909, will easily recall the $1,900 level for the sellers. Though, a confluence of 100-day SMA and an ascending trend line from April 2020, around $1,864 will be a tough nut to break for the sellers afterward. If at all the bears sneak in around $1,864, the September month's low near $1,847 and the early July high of $1,817 will gain market attention.
Overall, the gold prices are up for a fresh rush to the north but bulls are waiting for confirmation.