Gold price is closing in on $1,760, the 38.2% Fibonacci Retracement (Fibo) level of the recovery from yearly lows of $1,681 to the August 10 high of $1,808, amid a three-day recovery from monthly lows of $1,728.
If bulls manage to find a strong foothold above the latter, then a test of the 21 and 50-Daily Moving Averages (DMA) at $1,769 will be inevitable. Further up, the 23.6% Fibo resistance of the same ascent at $1,778 will challenge the bearish commitments.
Bulls, however, remain cautious, as the 14-day Relative Strength Index (RSI) still remains beneath the midline. Investors also remain wary of the 21 and 50 DMAs crossover, as indecision prevails ahead of the Jackson Hole Symposium.
On the flip side, the immediate support is pegged at the daily low of $1,750, below which the 50% Fibo level at $1,744 will be retested. The next critical downside cap is aligned at $1,729, which is the golden ratio – 61.8% Fibo level.