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MTrading Team • 2023-06-29

Gold sellers are ready to break $1,900 but road to the south is rough

Gold sellers are ready to break $1,900 but road to the south is rough

Gold stays on the way to post the third consecutive weekly loss even as the one-month-old falling trend line prod XAUUSD sellers around $1,900 of late. Also challenging the quote’s further downside is the nearly oversold RSI (14) line. However, the bullion’s sustained trading beneath the fortnight-long falling trend line and the 200-SMA, respectively near $1,918 and $1,956, joins the bearish MACD signals to keep the sellers hopeful of witnessing further downside. In a case where the quote crosses these hurdles, the monthly top will join the late May’s swing high, around $1,983-85, to act as the last defense of the bears.

Meanwhile, the Gold seller’s dominance past the $1,900 round figure will need validation from the 61.8% Fibonacci Expansion (FE) of its June 09-23 moves, near $1,898. Following that, the 78.6% and 100% FE, close to $1,887 and $1,873, should be quick to lure the XAUUSD bears. It’s worth observing that the precious metal’s weakness past $1,873 will have the early March high of $1,856 as an intermediate halt before dragging prices toward the yearly low marked in February around $,804.

Overall, Gold price is likely to remain bearish but the south run is less likely to be smooth.

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