Gold: Technical chart signals caution for the bulls
|Gold is edging lower but holding above $1,800. US dollar weakness and vaccine doubts offer support to the yellow metal while technical chart warrants caution for the XAU/USD bulls, FXStreet’s Dhwani Mehta reports.
See:
Gold to trade around $2,100 next year – ANZ
Gold to move above $2,000 over the next six months – TDS
Gold to end the uptrend on a break of critical $1,800 support – ABN Amro
Gold to rally towards $2300 in 2021 – CIBC
Key quotes
“The risk-off mood dominates after AstraZeneca’s coronavirus vaccine, which showed 90% efficacy, came under intense scrutiny. The upside in the precious metal remains elusive despite the tepid market mood and broad US dollar’s weakness. Market conditions are likely to remain thin, as the US markets operate partially amid the Thanksgiving holiday mood, leaving gold bulls vulnerable.”
“Closing below the rising trendline support at $1807 on the candle would confirm the pattern breakdown, triggering a break below the critical $1800 support. The next relevant support is seen at the May 18 high of $1765.”
“The Relative Strength Index (RSI) trends lower below the 50.0 level, allowing room for more declines.”
“he bearish 21-simple moving average (SMA) o at $1812 offers immediate resistance, above which the intermittent top at $1818 could be retested. Further up, the 50-SMA and the long-held support now resistance at $1850 will be the level to beat for the bulls.”
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