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  • 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.

Daily chart

Trend: Bearish below trendline

Technical levels