Gold Price Analysis: XAU/USD buyers attack six-week-old resistance line around $1,780
|- Gold keeps recovery moves from intraday low to print mild gains, picks up bids off-late.
- Ascending resistance line from early March tests bulls.
- 50-day SMA, monthly support line could offer bounces in case of pullback, any further weakness will recall the bears.
Gold rises 0.18% intraday while picking up bids near $1,777-78 ahead of Monday’s European session open. In doing so, the yellow metal flirts with the key hurdle stretched from March 03.
While strong RSI conditions and sustained trading above 50-day SMA favor gold buyers to cross the immediate resistance around $1,785, the $1,800 threshold and 100-day SMA near $1,805 will be the key upside barriers for the commodity.
Even if the bullion crosses the $1,805 SMA resistance, late February tops near $1,816 should be watched closely for fresh impulse.
Meanwhile, pullback moves remain less problematic above the 50-day SMA level of $1,751, as well as an ascending support line from March 31 around $1,746.
However, a clear downside break of $1,746 will confirm a rising wedge bearish chart pattern on the daily play and suggests further declines towards challenging the double bottoms marked in March, close to $1,676-77 before highlighting the theoretical target near $1,630.
Gold daily chart
Trend: Bullish
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.