Gold is extending its sideways consolidative price move for the second successive day. As FXStreet’s Haresh Menghani notes, the yellow metal has continued trading comfortably above the 200-day moving average around the $1,800 neighborhood and faces stubborn resistance at the $1,830/32 area.

Convincing break below $1,790 to pave the way for deeper losses

“XAU/USD has managed to hold above the very important 200-day SMA around the $1,800 mark. This is followed by an upward sloping trend-line extending from August 2021 swing low, currently around the $1,790 region, which should now act as a pivotal point. A convincing break below will be seen as a fresh trigger for bearish traders and pave the way for deeper losses. Gold might then accelerate the slide towards the $1,768-67 intermediate support en-route December swing low, around the $1,753 region.”

“The $1,830-32 supply zone should continue to act as immediate strong resistance. Some follow-through buying has the potential to lift gold to the next relevant hurdle near the $1,848-50 region. The upward trajectory could further get extended towards the $1,869-70 area en-route the $1,877 zone.”