Gold Price Analysis: XAU/USD sellers attack $1,781 support-confluence
- Gold extends Thursday’s losses from two-month top, bounces off intraday low.
- Downbeat momentum signals further weakness but 100-HMA, eight-day-old support line tests intraday sellers.
- Bulls need a clear break above $1,798 to regain market acceptance.
Gold drops 0.03% despite the latest corrective pullback to $1,784 ahead of Friday’s European session. In doing so, the yellow metal respects the previous day’s U-turn from the highest levels since late February.
Given the Momentum indicator flashing sluggish signs, the commodity prices can stay pressured. However, a convergence of 100-HMA and an ascending support line from April 13 near $1,781 challenges the metal sellers.
Should the quote remain depressed below $1,781, the weekly bottom surrounding $1,763 and last Friday’s low near $1,760 will be in the spotlight.
Meanwhile, the corrective pullback will aim for the $1,790 hurdle comprising multiple levels marked since Monday, a break of which should direct gold buyers toward the key $1,798 resistance comprising recent highs.
It’s worth mentioning that the bullion’s upside past $1,798 needs validation from the $1,700 psychological magnet before eyeing the top late February downswing, near $1,816.
Gold hourly 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.
