Gold Eases Below 1,800 and Short-Term SMAs

Gold could not find enough buyers to overcome the 1,800 level during the previous sessions, with the spotlight shifting again towards the 1,784 support zone and the Ichimoku cloud.

The RSI and the MACD continue to flatten, while the former has also slipped back below its neutral threshold of 50, feeding pessimism that the bulls may gave up the battle.

An extension below 1,784 could activate a stronger bearish wave towards the 1,7661 level. Failure to hold above that floor could see a continuation towards the 1,745-1,750 restrictive region.

The 1,800 round number, could challenge any bullish attempts towards the 200-day SMA, which stands near the 1,809 barrier. Any breakout above this region may gather extra interest, with the price likely speeding up to 1,815. Yet, only a rally above 1,850 would violate the neutral trajectory and hence add credence to the bullish run.

In brief, despite the latest rebound off 1,750, dowside risks continue to linger in the background for gold. A break below 1,784 could trigger the next bearish round.

December 23, 2021 at 01:44AM
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