Gold Price Analysis: Bullish move stalls near a multi-month ascending trend-line hurdle
- Gold surrenders early gains and retreated to the lower end of its daily range.
- Slightly overbought conditions seemed to have prompted some profit-taking.
- A subsequent fall below $1800 mark will set the stage for further weakness.
Gold struggled to capitalize on its intraday uptick back closer to multi-year tops and has now retreated to the lower end of its daily trading range, around the $1808-07 region.
The Relative Strength Index (RSI) on the daily chart has moved above 70, pointing to slightly overbought conditions. This seemed to be the only factor capping gains for the commodity near a resistance marked by a medium-term ascending trend-line.
The mentioned hurdle extends from August 2019 and is currently pegged near the $1820 region. A convincing breakthrough the mentioned barrier might be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent appreciating move.
On the flip side, any subsequent fall towards the $1800 mark might still be seen as a buying opportunity and help limit any deeper losses. That said, some follow-through selling might prompt some long-unwinding trade and pave the way for further weakness.
The commodity might then accelerate the corrective slide further towards the $1780 horizontal level with some intermediate support near the $1789 area. The downward trajectory could further get extended towards the next major support near the $1765 region.
Gold daily chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
