Gold Price holds above the 200-day SMA at $1,840. The yellow metal is unlikely to come under downside pressure as long as trades above this level, FXStreet’s Eren Sengezer reports.

Daily close below $1,840 could be seen as a bearish development

“The Fibonacci 23.6% retracement level of the latest downtrend and the 20-day SMA form the first resistance at $1,850. In case gold starts using that level as support, it could target $1,875 (50-day SMA, Fibonacci 38.2% retracement) and $1,890 (100-day SMA).”

“On the downside, a daily close below $1,840 (200-day SMA) could be seen as a bearish development and bring in sellers. In that scenario, interim support aligns at $1,830 (static level) ahead of $1,810 (static level) and $1,800 (psychological level).”