Gold retreats further from a multi-month top. The yellow metal could extend its slide on a break under $1,745, FXStreet’s Haresh Menghani report.

100-hour SMA near the $1,768 region seems to cap the immediate upside

“The weekly low, around the $1,753 region, might protect the immediate downside ahead of the $1,745 area below which Gold is likely to extend the ongoing corrective pullback. The next relevant support is pegged near the 200-hour SMA, currently around the $1,732-$1,731 region, also marking a strong horizontal resistance breakpoint. Some follow-through selling could drag the XAUUSD towards the $1,720 level, or the 38.2% Fibo. level, en route to the $1,700 mark.”

“The 100-hour SMA, currently near the $1,768 region, now seems to cap the immediate upside. A sustained strength beyond has the potential to lift Gold back towards the multi-month peak, around the $1,783-$1,786 region. Bulls might then aim to reclaim the $1,800 psychological mark. The said handle coincides with a technically significant 200-day SMA, which if cleared decisively should pave the way for a further appreciating move.”