Gold loses steam near 1,959 resistance, bias neutral-to-bearish [Video]
|Gold could not find enough buyers to cross the key resistance of 1,959 last week, with the price tumbling to 1,933 early on Monday.
The short-term bias is looking neutral-to-bearish as the RSI keeps fluctuating around its 50 neutral mark. The Stochastics have lost steam and are set for a downside reversal, while the MACD remains negatively charged between its signal and zero lines.
If sellers manage to breach the 1,920 floor, where the 50% Fibonacci retracement of the 1,780 – 2,070 up leg happens to be, the spotlight will immediately turn to the 50-day simple moving average (SMA) at 1,890. The 61.8% Fibonacci level of 1,870 is within breathing distance and may delay any declines towards the 1,850 handle.
Alternatively, for bullion to touch the crucial 2,000 number, upside pressures will need to successfully speed above the 1,959 bar. If the aforementioned levels prove easy to overcome, the bulls may attempt to print fresh record highs above the 2020 top of 2,079. In this case, the 161.8% Fibonacci extension of the latest downfall at 2,178 will be closely watched.
Summarizing, the precious yellow metal has started the week on the back foot, but the nearby support of 1,920 is still intact. A clear close below that base could strengthen selling tendencies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.