Gold is trading around $1710 and above the $1750 level the yellow metal is set to look for higher resistances, Rajan Dhall from FXStreet reports.
Key quotes
“The structure of the gold chart is not as bullish as most of the indices but it is definitely not as bearish as the dollar index. This leaves the precious metal in somewhat of a conundrum.”
“There is still a lower high lower low pattern. If the $1750 per troy ounce level is broken then this pattern becomes obsolete and analysts can look for higher levels once more. Until that point, the Fib extensions on the downside could be the potential targets.”
“At the moment, the 200 Simple Moving Average is providing some resistance and the price is also under the 55 Exponential Moving Average. The Relative Strength Index indicator has pulled away from the oversold zone allowing some more space for another move to the downside while the MACD is still very much in bearish territory.”
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