Gold fades upside momentum after refreshing a two-month high on early Tuesday. In doing so, the yellow metal seesaws near an ascending trend line from October 22. Also challenging the gold buyers is the overbought RSI conditions and receding bullish bias of the MACD. Should the commodity prices rise beyond the $1,829 immediate hurdle, the double tops, marked during July and September, around $1,834 will be the key to determining the metal’s further upside.
Meanwhile, pullback moves are more likely and highlight 78.6% Fibonacci retracement near $1,810. Following that, the $1,800 threshold and the 200-SMA level near $1,774 should be watched carefully. In a case where gold bears manage to conquer the 200-SMA support, the monthly low near $1,758 will be in focus. Overall, gold buyers seem to have tired and hence consolidation is likely to take place soon.
Meanwhile, pullback moves are more likely and highlight 78.6% Fibonacci retracement near $1,810. Following that, the $1,800 threshold and the 200-SMA level near $1,774 should be watched carefully. In a case where gold bears manage to conquer the 200-SMA support, the monthly low near $1,758 will be in focus. Overall, gold buyers seem to have tired and hence consolidation is likely to take place soon.