Technical Analysis: 100-DMA stops gold from being next silver
Although an ascending trend line from March keeps challenging gold sellers, 100-day SMA raise bars for the bull’s entry. Considering the improvement in RSI conditions and upbeat MACD, gold is likely to follow silver’s jump to the highest since August. However, a clear break above the 100-day SMA level near $1,880 becomes necessary for the bulls. It’s worth mentioning that the run-up to August high near $2,075 will have a descending trend line from the mid-September, around $1,955, as the key hurdle to cross.
If at all the yellow metal remains below $1,878 immediate resistance, odds of its downside break to the key support line, at $1,835 now, regain market attention. Should that happen, which has fewer back-ups, the November low of $1,764 will return to the charts. In doing so, the $1,800 threshold can play as an intermediate halt during the fall whereas June 2020 low near $1,670 may lure gold bears afterward.
If at all the yellow metal remains below $1,878 immediate resistance, odds of its downside break to the key support line, at $1,835 now, regain market attention. Should that happen, which has fewer back-ups, the November low of $1,764 will return to the charts. In doing so, the $1,800 threshold can play as an intermediate halt during the fall whereas June 2020 low near $1,670 may lure gold bears afterward.