- Gold looks to extend the retreat from two-week highs.
- Technical set up remains in favor of bears in the near-term.
- 50-HMA at $1912 offers immediate cushion.
Gold (XAU/USD) drops 0.50% so far this Monday, reversing Friday’s surge to two-week highs of $1930 amid a broad US dollar rebound and a technical breakdown on the hourly chart.
The bright metal charted a symmetrical triangle breakdown in the last hour, following a close below the rising trendline support at $1924.
The move lower calls for a test of the next downside target aligned at the upward-sloping 50-hourly moving average (HMA) at $1912. A break below which could open floors for a test of the $1901 fierce support. That level is the converge of the horizontal 100 and 200-HMAs.
The hourly Relative Strength Index (RSI) peeps into the bearish region below the midline, suggesting that there is more room to the downside.
Alternatively, the 21-HMA at $1927 could cap the immediate pullback. Further north, the bulls could challenge the two-week highs.
XAU/USD: Hourly chart
XAU/USD: Additional levels
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