Gold extends pullback from 200-DMA to attack monthly support
Gold keeps losses rolling for the second consecutive day, extending Tuesday’s U-turn from 200-DMA amid the initial European session on Thursday. While the descending RSI and bearish MACD favors sellers, a monthly rising support line near $1,785 challenges the commodity’s further downside. A clear break of the same will direct the quote towards the late-August swing lows near $1,770 before highlighting July’s low near $1,750 for the bears.
Meanwhile, the corrective pullback will aim for the $1,800 regain ahead of challenging the 200-DMA around $1,809 for one more time. It should be noted, however, that the precious metal’s upside break of $1,809 will target the clearance of a double-top formation around $1,834. In a case where gold buyers manage to conquer the key hurdle to the north, the early June lows near $1,855 and the $1,900 levels should return to the chart.
Meanwhile, the corrective pullback will aim for the $1,800 regain ahead of challenging the 200-DMA around $1,809 for one more time. It should be noted, however, that the precious metal’s upside break of $1,809 will target the clearance of a double-top formation around $1,834. In a case where gold buyers manage to conquer the key hurdle to the north, the early June lows near $1,855 and the $1,900 levels should return to the chart.