- Gold prices extend pullback moves from $1,763.22.
- A three-day-old ascending trend line restricts immediate downside.
- Bearish MACD, failure to cross the key resistance suggest further weakness.
- 200-HMA offers strong downside support during additional declines.
Having begun the week on the front foot to the highest since May 18, Gold prices ease to $1,754.14 at the start of Tuesday’s Asian session. Even so, the bullion’s consolidation from $1,763.22 stays above a short-term support line stretched from Thursday.
However, failure to cross the key resistance, namely the May month high near $1,765.40, joins the bearish MACD to signal further retracement of the precious metal. In doing so, the aforementioned support line, at $1,751.10 now, becomes the key.
Should the safe-haven slips below $1,751, it may eye the previous day’s low around $1,743 during the immediate downside. Also acting as additional support could be Thursday’s top near $1,738.80.
If at all the quote remains weak past-$1,738.80, a 200-HMA level of $1,731.30 holds the key to additional south-run towards $1,700 threshold.
On the upside, a clear break above $1,765.40 will be the key for the bulls to aim for $1,800. Though, the year 2012 top near $1,796 might offer an intermediate halt during the rise.
Gold hourly chart
Trend: Pullback expected
Share
