Gold (XAU/USD) witnessed a modest pullback from the vicinity of the $1,760-65 resistance zone during the Asian session on Friday and eroded a part of the overnight gains to five-week tops, FXStreet’s Haresh Menghani briefs.
See – Gold Price Analysis: XAU/USD to alleviate downside pressure above $1755/65 – Credit Suisse
XAU/USD bulls fail ahead of double-bottom neckline resistance
“There isn’t any major market-moving economic data due for release from the US on Friday, leading the commodity at the mercy of the USD price dynamics, the US bond yields and the broader market risk sentiment. This makes it prudent to wait for some strong follow-through selling before confirming that the two-week-old upward trajectory has run out of steam and positioning for the resumption of the prior/well-established bearish trend.”
“Resistance around the $1,760-65 region marks the neckline of a bullish double-bottom pattern, which if cleared decisively will set the stage for additional gains. XAU/USD might then accelerate the momentum towards an intermediate resistance near the $,1,782-84 area before eventually aiming to reclaim the $1,800 round-figure mark.”
“Any further pullback below the $1,740 level might find some support near the $1,730 level ahead of the $1,720 horizontal zone. Failure to defend the mentioned support levels might negate the positive outlook and prompt some technical selling. Bears might then challenge the $1,700 mark and drag gold back towards the double-bottom support near the $1,677-76 region.”