- Gold posts eighth straight daily loss, touching its lowest levels since March
- Decline shows no signs of easing, widening Bollinger bands point to high volatility
- Oscillators deep in oversold zone for quite some time, bulls remain on the sidelines
Gold has been in a steep downtrend after violating both its 50- and 200-day simple moving averages (SMAs). Even though the momentum indicators suggest that the retreat has been overstretched, the price appears unable to stage a rebound.
If the bears attempt to push the price even lower, the most prominent support could be the March bottom of 1,804, which is the lowest level observed in 2023. Falling to halt there, bullion might descend towards the November 2022 resistance of 1,786 that could serve as support in the future. Should that barricade also fail, the spotlight could turn to the November 2022 support of 1,726.
On the flipside, bullish actions could propel bullion towards the March resistance of 1,857. Surpassing that region, the price may face a couple of previous support regions such as 1,884 and 1,901. A violation of that region could set the stage for the February peak of 1,959.
All in all, gold seems to be under relentless downside pressure, which has pushed the price into oversold conditions. Can the bulls strike back?
. Even though the momentum indicators suggest that the retreat has been overstretched, the price appears unable to stage a rebound. ){kind=link}