Spot gold probed again below $1800 support on Wednesday, as rising dollar dents metal’s safe-haven appeal, but growing fears about pandemic resurgence and new lockdowns could hurt global economic recovery, keep the metal afloat.
The price action of past three sessions lack direction, as long tail of Monday’s daily candle (action was contained by 20DMA) and long upper shadow of Thursday’s candle (the action was capped by 200DMA) signal.
Technical studies show MA’s in mixed setup, while bullish momentum is fading but still holding in the positive territory, suggesting that traders are awaiting clearer signal.
Initial support at $1800 is holding for now, with repeated close above here to keep in play hopes for fresh attempts higher.
Conversely, break of $1800 pivot and converged 20/100DMA’s ($1796/94) would weaken near-term structure and signal extension of pullback from $1834 (July 15 recovery high).
Res: 1813; 1824; 1833; 1852
Sup: 1800; 1794; 1789; 1782