- Gold is losing the strong momentum of the previous day.
- 100-day SMA, 2-week horizontal resistance limits immediate gains.
- The 21-day SMA, $ 1,760–55, will test short-term bears.
During the Asian session on Tuesday, gold fell to a fresh daily low of $ 1,790.71, up 0.13% on the day. At the same time, the yellow metal dipped below the key resistance at $ 1,800 amid the recently weakened Momentum indicator.
Sellers appear to be attacking a 38.2% Fibonacci retracement down from January to March, around $ 1,785, a breakout of which will extend the latest pullback towards the 21-day moving average level close to $ 1,766.
However, any further decline will be hindered by a broad support zone consisting of several levels since late February in the $ 1,760- $ 55 region.
Meanwhile, further upside potential should provide a daily close beyond the $ 1,800 threshold to attack late February highs surrounding $ 1,816 and a 50% Fibonacci retracement level near $ 1,819.
In the event that gold remains firm above $ 1,819, the 61.8% Fibonacci retracement level close to $ 1,851 and the February high of $ 1,855.50 will be key to watch.
Gold daily chart
Trend: Pullback is expected