- Gold prices step back from one-week top, snap three-day uptrend.
- 21-day SMA, five-week-old resistance line and 61.8% Fibonacci retracement of November-January upside probe the bulls.
- $1,800 regains market attention, buyers have multiple upside barriers.
Gold fails to extend the previous three-day bull-run while easing to $1,836, an intraday low of $1,834, during Wednesday’s Asian session.
Although the receding strength of the bearish MACD signals favors the gold buyers, multiple resistances restrict the metal’s around $1,840.
Among them, a downward sloping trend line from January 06, currently around $1,837 acts as the immediate upside barrier ahead of 61.8% Fibonacci retracement level of $1,839 and 21-day SMA near $1,841.
If at all the quote crosses the $1,841 hurdle, 50% Fibonacci retracement level surrounding $1,862 and the late January top close to $1,875-76 will be the key to watch.
On the flip side, sellers may eye the $1,800 round-figure during the fresh declines before targeting the monthly low of $1,792.
It should, however, be noted that the January low of $1,762 will lure the gold bears past-$1,762.
Overall, gold prices are nearing decisive resistances and hence warrant close attention.
Gold dialy chart
Trend: Pullback expected