Gold Price defends minor recovery gains above $1,800 amid US holiday. As FXStreet’s Dhwani Mehta notes, death cross is set to ring knell for the yellow metal.
The path of least resistance appears to the downside
“Gold is faltering on its recovery momentum, as the 50-Daily Moving Average (DMA) is crossing the 200 DMA for the downside. If the bearish crossover is confirmed on a daily closing basis, it would validate a death cross, suggesting a beginning of a new downtrend in the yellow metal.”
“A daily candlestick close below the $1,800 mark will open up additional declines towards the critical horizontal support, now aligned at $1,785. The next downside target is seen at $1,780 the figure.”
“On the flip side, the rebound in XAUUSD could face strong offers at the falling trendline resistance at $1,822, above which bulls will call for a test of the bearish 21 DMA at $1,832 should the $1,830 level give way.”
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