Gold price extends previous losses. The 50-day moving average (DMA) at $1780 is set to test bulls’ commitments again as focus shifts to US data, central banks, FXStreet’s Dhwani Mehta reports.
Gold bears return ahead of key central banks’ rate decisions
“Investors gear up for the US Durable Goods Orders release, with the headline number likely to drop to 1.1% in September vs. 1.8% previous. The US macro news will significantly affect the dollar trades, in turn, gold’s price action. Gold traders will watch out for any hawkish hints from the Bank of Canada (BoC) policy meeting while the main event risk this week remains the US Q3 GDP report and the European Central Bank (ECB) decision.”
“The bright metal is challenging the mildly bearish 100-DMA support at $1789, eyeing a retest of the horizontal 50-DMA cap at $1780. Further south, the upward-pointing 21-DMA at $1771 could come to the rescue of gold bulls.”
“If the buyers manage to defend the 50-DMA once again, then a rebound towards the 200-DMA at $1793 will be on the cards.”
“A daily closing above the 200-DMA is critical to revive the previous week’s uptrend. The six-week highs of $1814 will be once again in the buyers’ sights should $1800 hold the fort on the upside. The falling trendline resistance at $1811 could also offer strong resistance on the road to recovery.”
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