Gold prices fade the previous day’s bounce off 200-SMA while testing two-week-old horizontal support around $1,875/74 during early Tuesday. Although easing RSI and bullish bias of the MACD histogram suggests further downside of the yellow metal, the key SMA level, at $1,857.30 now, precedes the short-term rising channel’s support line, currently around $1,849, to challenge the sellers. If the gold traders manage to defy the bullish chart pattern with a downside break of $1,849, the $1,800 threshold and the monthly low near $1,764 should gain market attention.

Meanwhile, the mid-November top near $1,900 guards immediate upside of the commodity ahead of the recent high of $1,906.66. During the quote’s further rise past-$1,907, the upper line of the stated channel from December 01, at $1,926 now, will lure the gold buyers. Overall, the gold is positive for the short-term despite the recent pullback moves.

Join us on FB and Twitter to stay updated on the latest market events.