- Gold refreshes intraday low after breaking short-term ascending trend line.
- RSI isn’t yet oversold, suggesting further weakness eyeing the monthly low.
- September’s bottom adds a filter to the downside below $1,850.
Gold takes offers near the intraday low near $1,860, down 0.55%, ahead of Thursday’s European session.
The yellow metal recently broke a short-term rising support line stretched from November 09. The fall takes clues from the weak RSI conditions, not oversold, which in turn helps the sellers to aim for the monthly low of around $1,850.
However, any further weakness past-$1,850 will wait for a decisive break below the September month’s low of $1,848.82, to highlight the early-July tops near $1,818 for the bears.
Meanwhile, corrective bounce beyond the immediate resistance, previous support, around $1,873, can eye 200-bar SMA level of $1,899 during the further rise.
It should be noted that the metal’s additional north-run after $1,899 will check for validation from the $1,900 round-figure before targeting the monthly top near $1,965.
Gold four-hour chart
Trend: Further downside likely
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