- Gold eyes five-month ascending trendline support at $1,860.
- The metal’s RSI has already breached the rising trendline.
Gold is fast approaching support of the ascending trendline rising from March 20 and June 5 lows, having breached the psychological support of $1,900 a few minutes before press time.
The yellow metal is currently trading near $1,880 per ounce and the rising trendline support is located at $1,860.
The 14-day relative strength index has breached the trendline representing the bull run from lows near $1,450 seen in March. The indicator is now hovering in bearish territory below 50.
As such, the metal looks set to test the rising trendline support at $1,860 – more so, as the US yields are rising. The 10-year yield jumped over six basis points to 0.66% on Tuesday – the highest level since July 13.
Acceptance below the rising trendline would imply an end of the five-month-long price rally. A strong bounce from the ascending support may cause more buyers to join the market, leading to a re-test of $2,050.
Trend: Bearish below trendline