The short-term technical view on gold favors the bears, who continue to lurk above $1950 despite the dollar decline. Improving US-China also ties to limit the upside attempts in gold, FXStreet’s Dhwani Mehta reports.
Key quotes
“In the absence of relevant US economic news, gold prices will continue to take cues from the broad market sentiment and US-China updates.”
“The price trades below all the major hourly Simple Moving Averages (HMA) while the hourly RSI trades flat just below the midline in the bearish territory.”
“The bulls need to take out the stiff resistance around the $1945/50 region for a sustained move to the upside. Friday’s high at $1962.30 will be next on the buyers’ radar.”
“To the downside, an hourly closing below the critical $1929 support, the convergence of the falling trendline and intraday low, will revive last week’s bearish momentum. The further downside will then open up towards the $1907 support, with the next cushion seen at $1900.”
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