- Gold prices stay mildly bid while keeping Friday’s break of monthly falling trend line.
- Bearish MACD, 21-day SMA question the bulls targeting $2,000.
- A six-week-old ascending trend line, 50-day SMA restrict short-term downside.
Gold prices ease to $1,968.50, up 0.28% on a day, as traders in Europe gather for Monday’s bell. In doing so, the bullion steps back from 21-day SMA despite keeping Friday’s upside break of a descending trend line from August 07.
With the third pullback from the key SMA joining the bearish MACD, odds of the yellow metal’s drop to the short-term support line, previous resistance, around $1,939, become high. Though, an ascending trend line from July 17, at $1,913 now, could restrict the bullion’s further weakness.
In a case where the sellers manage to dominate past-$1,913, a 50-day SMA level of $1,889 will gain market attention.
Alternatively, a daily upside clearance of a 21-day SMA level of $1,970 will aim for the $2,000 threshold whereas August 18 peak surrounding $2,015 and the record high close to $2,075 will lure the bulls afterward.
Gold daily chart
Trend: Pullback expected
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