- Gold prices struggle to keep the latest recovery moves, forms a bearish technical pattern.
- 100-HMA, one-week-old resistance line add to the upside barriers.
- A downside break of $1,938 will recall the sellers targeting sub-$1,900 area.
Gold fails to keep its recent bounce off $1,937.89 as the bullion drops from $1,955 to $1,947 during the early Friday’s Asian session. The precious metal’s fresh moves copy trading performance following its pullback from $1,863.24 to portray a bearish chart pattern on the hourly formation.
However, sellers are waiting for a clear break of $1,938 to confirm the downside bias towards a $1,840 theoretical target. It should be noted that $1,900 and Wednesday’s low near $1,863 can offer intermediate halts during the fall.
In a case where the bears dominate past-$1,863, the early-July top near $1,818 will be in the spotlight.
On the contrary, 100-HMA joins the bearish formation’s resistance line around $1,968 to challenge the bulls before diverting them to a descending trend line from August 06, at $2,001.
Should the commodity remains strong beyond $2,001, it becomes capable to attack the all-time high around $2,075.
Gold hourly chart
Trend: Pullback expected