Key SMA confluence probes gold buyers below $1,800
Gold prints four-day uptrend, tracking monthly support line amid early Friday. However, a convergence of the 100 and 200-DMAs near $1,795 offers a tough nut to crack for the bulls. Should the quote rise past $1,795, the mid-September peak near $1,809 may offer an intermediate halt during the run-up targeting the $1,834 crucial resistance, marked twice in 2021. It’s worth noting that the latest inflation chatters underpin the US Treasury yields and may recall the US dollar bulls should today’s PMIs for October arrive as strong, which in turn could pull the gold prices back from a strong resistance level.
On the contrary, a downside break of the stated support line, around $1,778 by the press time, may need validation from $1,770 and June’s low near $1,750 to convince gold sellers. Following that, 23.6% Fibonacci retracement of June-August fall, near $1,733, could probe the fall targeting the $1,700 threshold and the yearly bottom surrounding $1,668. Overall, gold remains in the consolidation mode and needs confirmation for further upside.
On the contrary, a downside break of the stated support line, around $1,778 by the press time, may need validation from $1,770 and June’s low near $1,750 to convince gold sellers. Following that, 23.6% Fibonacci retracement of June-August fall, near $1,733, could probe the fall targeting the $1,700 threshold and the yearly bottom surrounding $1,668. Overall, gold remains in the consolidation mode and needs confirmation for further upside.