- Gold reverses the recovery trend and falls sharply.
- XAU / USD declined near $ 1770, losing ground below $ 1750.
The Gold is falling at the start of the week and is trading at a minimum for the day at $ 1747, after having been at a week high at $ 1765 in Asian session hours.
The gold trend reversal and the nearly $ 20 drop from the peak occurred despite the dollar losing ground and stability in equity markets. This implies a particular weakness in the metal. Silver was also hit and is trading below $ 22.30.
Technical outlook: weakness below $ 1750
The return below $ 1760 took strength out of gold and now the decline to levels below $ 1750 adds further downward pressure. Should weakness persist, the next support is at $ 1740 and then at last week’s low around $ 1720, the break of which could lead to a downward acceleration.
To the upside, the first resistance looms at $ 1757. If it stands above $ 1760, gold could regain some shine. Then at $ 1,770 and $ 1,780, relevant technical areas appear, which if left behind, would enable a return over $ 1,800.
Technical levels
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