- Gold prices remain slightly buying while maintaining Friday’s breakout of the monthly downtrend line.
- Bearish MACD, 21-day SMA questions bulls targeting $ 2,000.
- Six week ascending trendline, 50 day SMA restricts short term decline.
The price of gold drops to $ 1,968.50, up 0.28% per day, as European traders rally for the Monday bell. In doing so, the bullion retreats from the 21-day SMA despite maintaining Friday’s bullish breakout of a descending trendline from August 07.
With the third pullback of the SMA key joining the bearish MACD, the chances of the yellow metal falling to the short term support line, the previous resistance, around $ 1939, becomes high. However, an ascending trendline from July 17th, at $ 1,913 now, could limit further bullion weakness.
In a case where sellers manage to dominate beyond $ 1,913, a 50-day SMA level of $ 1,889 will grab the market’s attention.
Alternatively, an upward daily clearance of a 21-day SMA level of $ 1970 will target the $ 2000 threshold, while the August 18 high around $ 2015 and the all-time high of near $ 2,075 will attract bulls through the after.
Gold daily chart
Trend: expected decline