Gold Price Analysis: XAU/USD bulls stay hopeful above $1,800 despite Wednesday’s spinning top
- Gold prices recede from $1,813.40 after a three-day winning streak.
- Spinning top suggests traders’ indecision, can be clubbed with recent sluggish moves.
- Sustained trading beyond 10-day EMA, the monthly support line portrays bullion’s strength.
- The month-start top adds to the downside barrier, multiple resistances stand tall to guard further advances past-$1,800.
Gold prices ease from one week high to $1,810 amid early Thursday morning in Asia. The bullion marked consecutive third positive daily closing the previous day. However, sluggish moves portray a “Spinning Top” candlestick formation suggesting traders’ indecision. The pattern joins the quote’s recent failures to refresh monthly high in suggesting the underlying weakness of the bullish momentum.
As a result, the bears could seek fresh entries targeting $1,800-$1,798 support area comprising 10-day EMA and an upward sloping trend line from June 15. However, any further weakness by the yellow metal will divert the bears towards July 01 top near $1,789.
It should also be noted that the Gold price weakness past-$1,789 might not refrain from attacking the early-June peaks near $1,745.
On the contrary, the monthly top, also the multi-year high, around $1,818 acts as an immediate resistance, a break of which could escalate the bullion’s north-run towards August 30, 2011 peak surrounding $1,840.
Additionally, the precious metal’s ability to stay strong beyond $1,840 enables it to aim for the record high of $1,921 flashed during September 2011.
Gold daily chart
Trend: Pullback expected