VOT Research Desk
The gold price is dropping from near $1,790, halting a two-day upward momentum on rising demand for the United States Dollar (USD) globally.
Rising economic fears rekindle the US Dollar’s safe-haven charm, limiting gold price gains.
Since mid-November, the gold price has been moving within a rising wedge shape on the daily chart. So far this week, gold bulls have drawn support from the rising trendline support, which is now at $1,774, as they attempt to reclaim the crucial 200-Daily Moving Average (DMA) at $1,793.
The 14-day Relative Strength Index (RSI) is decreasing but remaining comfortably over the midpoint, indicating that there is still opportunity for additional recovery.
If the gold price breaks above the 200DMA on a daily closing basis, another run to multi-month highs over $1,810 is not out of the question.
The rising trendline (wedge) resistance at $1,814 will be tested further higher. A daily close below the aforementioned trendline support at $1,774 will certify a rising wedge collapse, revealing the next cushion.
At the $1,725 horizontal (dashed) trendline Prior to that, the bullish 21DMA at $1,765 will provide strong support.
