Gold price regained the downward-pointing 21-Simple Moving Average (SMA) on the four-hour chart, now at $1,781, having defended that critical mildly bullish 50SMA support at $1,774.
Despite the downside break from the rising wedge seen earlier this week, bulls continued defying bearish expectations. Acceptance above the 21SMA will initiate a meaningful recovery toward the $1,800 mark. The next upside target is pegged at the multi-month highs at $1,810.
The tide seems to have turned in favor Gold buyers, as the Relative Strength Index (RSI) has swung back into bullish territory. The rising wedge breakdown on the four-hour chart remains in play, keeping Gold price on the defensive in the lower range of this week’s trading range so far.
On the flip side, a four-hourly candlestick closing below the 21SMA resistance-turned-support could reinforce the bearish momentum, bringing the 50SMA back on sellers’ radars. The horizontal 100SMA at $1,764 will be a tough nut to crack for Gold bears on their way to the $1,750 psychological level.