Gold’s rebound remains unconvincing below $1,692
A two-month-old previous resistance line defends gold buyers as they seek clarity ahead of the US Consumer Price Index (CPI) data. Also keeping the metal bulls hopeful is the 50-SMA’s piercing of the 200-SMA from below, known as the bull cross or golden cross. It’s worth noting, however, that the recovery remains elusive unless the bullion stays successfully beyond the aforementioned SMA convergence near $1,690-92. Following that, a run-up toward the monthly high near $1,730 appears imminent. Even so, the 61.8% and 78.6% Fibonacci retracement levels of the quote’s August-September downside, respectively near $1,735 and $1,767, will be in the spotlight.
Alternatively, a downside break of the $1660 support confluence, including the resistance-turned-support line and 23.6% Fibonacci retracement level, could convince gold sellers. In that case, the $1,640 and the yearly low of $1,614 might entertain the bears on their way to the $1,600 threshold. If the metal prices remain weak past $1,600, the April 2020 low near $1,570 should become the yearly bottom.
Overall, gold is teasing the buyers but confirmation is necessary from both, the US inflation data and technical details.
