The price of gold is struggling to seek out any real direction with all of this week’s gains given back thus far. the tiny pick-up within the US dollar is weighing on the valuable metal although the move within the greenback has been small at the best. From a technical viewpoint, gold remains under downside pressure from all three simple moving averages with the 20-day SMA (red line) acting as initial resistance in the week. Gold will be got to open above this indicator if it's to regain any bullish sentiment.
Moving Averages (MA) Explained for Traders
Initial resistance off the 20-day SMA currently at $1,840/oz. is followed by this week’s high at $1,855/oz. and therefore the 50-day SMA at $1,860/oz. within the short-term, it's increasingly likely that these levels will cap any longer upside. Support for gold starts at around $1,807/oz. with various levels of horizontal support seen on the chart all the way right down to $1,764/oz. which also coincides with the five hundred Fibonacci retracements of last year’s March to August rally. it's likely that unless there's a pointy change in market sentiment, the worth of the US dollar or US Treasury yields, then gold will still fluctuate during a $1,760/oz. to $1,860/oz. the range for now.
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