Gold remains depressed around the lowest in two weeks as market sentiment sours ahead of the key European Central Bank (ECB) monetary policy meeting on Thursday. Having stepped back from a two-month-old horizontal resistance last Friday, gold prices dropped below 200-DMA and 50-DMA during the current week. The downside momentum recently gains support from bearish MACD and an absence of oversold RSI to direct the sellers towards June’s low near $1,750. However, $1,760 and August 18 low close to $1,774 may act as intermediate halts.
On the contrary, gold buyers should retake controls if the ECB hawks dominate while announcing the widely chattered PEPP tapering. Even so, 50-day and 200-day SMAs, respectively near $1,798 and $1,809, can challenge the bulls ahead of directing them to the crucial horizontal hurdle surrounding $1,834. To sum up, gold needs market optimism, which is less likely to pop up from today's ECB and hence bears can keep the reigns.
On the contrary, gold buyers should retake controls if the ECB hawks dominate while announcing the widely chattered PEPP tapering. Even so, 50-day and 200-day SMAs, respectively near $1,798 and $1,809, can challenge the bulls ahead of directing them to the crucial horizontal hurdle surrounding $1,834. To sum up, gold needs market optimism, which is less likely to pop up from today's ECB and hence bears can keep the reigns.