Gold price closed Tuesday above $1,744, the 50% Fibonacci Retracement (Fibo) level of the recovery from yearly lows of $1,681 to the August 10 high of $1,808.
However, bulls failed to find acceptance above the $1,750 psychological level, recalling bears this Wednesday. The 14-day Relative Strength Index (RSI) is turning south once again while below the midline, suggesting that the downside pressure could build up in the sessions ahead.
Adding credence to the bearish bias, the 50-Daily Moving Average (DMA) is fast approaching the 21 DMA from above.
The golden ratio – 61.8% Fibo of the same ascent at $1,729 is now on sellers’ radars. A sustained break below the 61.8% Fibo support will open up the downside towards $1,700 mark.
On the flip side, bulls need a daily closing above the $1,750 psychological level, above which the 38.2% Fibo resistance at $1,760 will be probed.
Further up, the meeting point of the 21 and 50 DMAs at $1,769 will be a tough nut to crack for XAU bulls.