- Gold fails to extend pullback from $1,759 beyond $1,773.
- 50-bar SMA, support line of a monthly ascending channel offer strong support.
- An upward sloping resistance line from June 02 becomes the key during fresh recoveries.
Gold prices stay soft around $1,772 during the early Thursday morning in Asia. The bullion refreshed the multi-year high the previous day. Though, a one-month-old rising trend line tamed the bulls. The precious metal currently takes round to the support line of a short-term bullish channel, also nearing the 50-bar SMA amid bearish MACD signals.
Considering the commodity’s repeated failure to cross near-term key resistance, coupled with the MACD conditions, odds are increasing of a fresh downside following a heavy rise in the recent days. However, sellers are waiting for a clear break below $1,765 level comprising the said channel’s lower line and immediate SMA.
In doing so, June 11 top surrounding $1,745 will become the bears’ short-term target ahead of putting $1,700 on the radars. If downside momentum exceeds well past-$1,700, the previous month’s low near $1,670 could return to the charts.
On the upside, $1,780 might offer nearby resistance during the quote’s U-turn ahead of the ascending resistance line from June 02, at $1,791 now.
Given the bulls’ refrain from respecting the adjacent resistance line, another upside hurdle, in the form of the mentioned channel’s upper-line, currently around $1,803, might be in focus.
Gold four-hour chart
Trend: Pullback expected
