- Gold's 50- and 100-day averages are on track to produce a bearish crossover.
- The impending bear cross will likely invite stronger chart-driven selling.
Gold is currently trading at $1,457, representing a 0.20% rise on the day.
The moderate gain, however, could be short-lived as the impending bear cross between the 50- and 100-day moving averages is likely to invite stronger chart-driven selling.
At press time, the 50- and 100-day averages are located at $1,486 and $1,484, respectively. The bearish crossover looks set to happen in the next day or two.
Other chart studies are also biased bearish. For instance, the 14-day relative strength index is holding below 50 and the MACD histogram is hovering below zero.
The lower high at $1,475 established on Nov. 20 indicates the path of least resistance is to the downside.
And last but not the least, the greenback, gold's biggest nemesis, is expected to trade on the front foot courtesy of the upbeat US data - the third-quarter gross domestic product increased by 2.1% in the third quarter, driven by strong consumer spending.
Daily chart
-637105044670072487.png)
Trend: Bearish
Technical levels
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