Gold Price Analysis: Focus on three-week-old support trendline near $1,680
- Gold prices recover from weekly low, nears short-term key support line.
- Sustained trading below 100-bar SMA, bearish MACD keep sellers hopeful.
- 200-bar SMA could question the downside below the support trend line.
- Buyers will have multiple upside barriers to conquer during the recovery.
Gold prices register 0.12% gains on a day while bouncing off the weekly low, flashed the previous day, to $1,689, during the early Asian session on Friday. Even so, the bullion remains below 100-bar SMA amid bearish MACD.
As a result, the sellers remain directed towards breaking the three-week-old support line, currently around $1,680, which holds the key to the metal’s further drop towards a 200-bar SMA level of $1,640.
However, the previous week’s low surrounding $1,661/60 may offer intermediate support during the downside.
Meanwhile, an upside clearance of 100-bar SMA level of $1,701.55 isn’t a sure signal for the bullion’s rise as one-week-old falling trend line and the monthly resistance line since April 14, respectively near $1,720 and $1,733, will challenge the bulls afterward.
In a case where the buyers manage to conquer $1,733, the previous month top near $1,748 and the year 2012 peak close to $1,796/97 will be on their radars.
Gold four-hour chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
