- Gold retreats from one-week high, stays positive for the second consecutive day.
- Sluggish momentum, strong resistance confluence test the bulls.
- Bears may find difficulty breaking the three-week-old support zone.
Gold prints a two-day winning streak despite the latest pullback from the weekly top, up 0.17% intraday around $1,784, during the pre-European trading session on Thursday.
Although the monthly support line, now resistance, joins a one-week-old falling trend line to highlight $1,790 as the key hurdle, the pair’s weakness may struggle to break the $1,763-58 support area comprising multiple levels marked since April 08.
It should, however, be noted that a clear downside break of $1,758 won’t hesitate to challenge the April 13 low near $1,724.
Alternatively, an upside clearance of $1,790 needs to cross the recently flashed multi-day top of $1,798 as well as the $1,800 threshold to recall gold buyers.
Following that, February highs close to $1,816 should return to the charts.
Gold four-hour chart
Trend: Further weakness expected
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