Gold Price Analysis: Below $1,600, weak under 21/50-day SMAs
|- Gold prices cling to 50% Fibonacci retracement of its March month pullback.
- The bullion remains weak below the confluence of key SMAs.
- 61.8% Fibonacci retracement, the previous week’s top add to the upside barriers.
While a sustained break below 21/50-day SMAs portrays Gold’s weakness, the yellow metal seesaws around $1,579/78 amid the Asian session on Wednesday.
The safe-haven currently takes rounds to 50% Fibonacci retracement of its early-March month declines amid bullish MACD.
In addition to the said SMA confluence near $1,590/92, 61.8% Fibonacci retracement level of $1,607 and March 26 high near $1,645 will also challenge the buyers in case of the metal’s fresh upside.
Meanwhile, $1,560 and 38.2% Fibonacci retracement level near $1,548 can offer immediate support during further weakness, which is quite expected.
Should there be a clear weakness below $1,547, 23.6% Fibonacci retracement near $1,511 will be the key to watch as a break of which could recall the previous month lows surrounding $1,445.
Gold daily chart
Trend: Bearish
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.