- Gold’s recovery from four-month lows falters.
- Sellers lurk at the 21-hour SMA at $ 1,784, still targeting $ 1,750.
- The RSI on the 1 hour chart turns down below its midline.
The recovery of gold prices (XAU / USD) from the four-month lows of $ 1,765 has lost steam at the bearish 21-hour moving average at $ 1,784 during the European session on Monday.
The new downward movement in the yellow metal comes after European stock markets turned positive after opening red, as risk appetite fueled by optimism for a coronavirus vaccine resumes.
Gold’s 1-hour chart shows price reversing to test support of the one-week downtrend line, now at $ 1,768.
A break below that level could point to testing the multi-month lows. Lower down, the July 2 low of $ 1,758 will offer strong support. The psychological level of $ 1,750 will be the level to beat for the bears.
The RSI on the 1-hour chart has turned lower while inside the bearish zone, having stopped its recovery, suggesting that the move down could probably resume.
On the other hand, acceptance above the critical 21-hour SMA could expose the daily high of $ 1,790. The next relevant bullish target awaits at the 50 hourly SMA at $ 1,800.
Gold 1 hour chart
Gold technical levels
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