Gold: Break above $1818 to confirm bearish exhaustion

FXStreet Team FXStreet

Gold (XAU/USD) attempted a tepid recovery from near four-month troughs on Wednesday but faced rejection at higher levels and finished the day almost unchanged around $1807. The yellow metal treads water on Thanksgiving Day-quiet trading as Wednesday’s doji candle calls for indecision while $1800 holds, FXStreet’s Dhwani Mehta briefs.

See:

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

“A lack of relevant macro news and holiday-thinned light trading could keep the investors on the sidelines, although some exaggeration in the moves cannot be ruled.”

“Bears are likely to see any bounce in the spot as a good selling opportunity following a big breakthrough the critical $1850 support earlier this week.”

“Gold remains within a familiar trading range, lacking a clear directional bias, as indicated by Wednesday’s doji candle. However, the risks remain skewed to the downside, with the $1800 level still in danger. The selling momentum could accelerate on a break below the 200-daily moving average (DMA) at $1798, opening floors towards May 18 high of $1765.”

“Wednesday’s high of $1818 needs to be taken out for the recovery to gain traction.”

Author

FXStreet Team

FXStreet

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