Technical Analysis: Gold price seems vulnerable below 50-day SMA, $2,315 holds the key for bulls
From a technical perspective, the Gold price now seems to have found acceptance below the 50-day Simple Moving Average (SMA). Moreover, oscillators on the daily chart have just started gaining negative traction and support prospects for further losses. A subsequent slide below the multi-week low, around the $2,315-2,314 area touched on Tuesday, will reaffirm the bearish bias and drag the XAU/USD below the $2,300 mark, towards testing the $2,280 horizontal support. Some follow-through selling will be seen as a fresh trigger for bearish traders and pave the way for an extension of the recent corrective decline witnessed over the past two weeks or so.
On the flip side, any meaningful upside now seems to confront stiff resistance near the $2,349-2,350 supply zone. The next relevant hurdle is pegged near the $2,360-2,364 area, which if cleared decisively should allow the Gold price to climb further towards the $2,385 intermediate hurdle en route to the $2,400 mark. The momentum could extend towards the $2,425 zone and eventually lift the XAU/USD to the $2,450 region, or the all-time peak touched in May
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