Gold Marches Towards $1,785-87
Filatov Arthur | Aug 04, 2022 02:40AM ET
Gold price extended the previous day's rebound from the 38.2% Fibonacci retracement of the June-July downturn, around $1,755, amid a firmer RSI line.
The recovery moves, however, need validation from the $1,785-87 monthly horizontal resistance area. That said, the 50% Fibonacci retracement (Fibo.) level near $1,780 can act as immediate resistance.
If the quote rises past $1,787, the odds of witnessing a run-up towards Jul. 4 swing high near $1,814 can't be ruled out. Alternatively, a downside break of the 38.296 Fibo level near $1,755 becomes necessary to recall the XAU/USD bears.
Following that, a convergence of the 50-SMA and a two-week-old ascending trend line, close to $1,750-48, will be crucial to watch for the gold bears.
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