Gold Price Approaches Channel Resistance

The price of gold trades back above the 50-Day SMA ($1930) as it extends the advance from the start of the week, but bullion may track the negative slope in the moving average should it respond to channel resistance.

Gold Price Outlook

The price of gold may continue to retrace the decline from the monthly high ($1966) following the failed attempts to close below the $1886 (23.6% Fibonacci extension) to $1896 (61.8% Fibonacci retracement) region, with a close above $1937 (38.2% Fibonacci extension) bringing the $1972 (78.6% Fibonacci retracement) to $1977 (50% Fibonacci extension) area on the radar.

However, failure to close above $1937 (38.2% Fibonacci extension) may keep the price of gold within a descending channel, with a close below the $1886 (23.6% Fibonacci extension) to $1896 (61.8% Fibonacci retracement) region raising the scope for a move towards $1843 (50% Fibonacci retracement).