Gold price is fading its bullish momentum this Wednesday. As FXStreet’s Dhwani Mehta notes, 50 DMA appears a tough nut to crack for XAU/USD bulls.
The pullback in the bullion appears temporary
“A sustained break above the bearish 50-Daily Moving Average (DMA) at $1,724 is needed to challenge the September highs at $1,735, above which the $1,750 psychological level will come into play.”
“On the downside, the previous critical resistance now support at $1,700 could offer temporary reprieve to buyers, below which the previous day’s low of $1,695 could be revisited. Powerful support at $1,680 will be the last line of defense for gold bulls. That level is the confluence of the mildly bullish 21 DMA and the falling trendline resistance-turned-support.”
See – Gold Price Forecast: XAU/USD to drift lower again towards $1,580 – TDS