Gold Price Analysis: XAU/USD sellers flirt with $1,800, eye weekly support line
|- Gold bounces off intraday low, remains weak for the third day.
- Two-week-old resistance line guards immediate upside, 100-HMA offers adjacent support.
Gold struggles to keep $1,800, recently bouncing off 100-HMA, during the early Thursday. Even so, the yellow metal declines for the third consecutive day while following a downward sloping trend line from February 10.
Given the absence of oversold RSI conditions on the hourly (1H) chart, coupled with the sustained trading below the stated resistance line, gold sellers are likely to keep the reins.
As a result, the quote’s downside past-100-HMA level of $1,796 becomes imminent. However, an ascending support line from last Friday, at $1,786 now, can challenge the bullion bears afterward.
On the flip side, a 50-HMA level of $1,805 can offer immediate resistance ahead of the short-term falling trend line, currently around $1,807.
If at all, the gold buyers manage to cross $1,807, they need to refresh the weekly high above $1,816 to direct the bulls to the February 10 high of $1,855.
To sum, gold lacks upside momentum below the key resistance line and hence the latest pullback may keep sellers hopeful.
Gold hourly chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.