Technical Analysis: Gold price manages to hold above a short-term ascending trend-line support

From a technical perspective, Friday's decline could be categorized as a failed breakout through the 50-day Simple Moving Average (SMA) resistance. The subsequent downfall, however, stalls ahead of a two-week-old ascending trend-line support, currently pegged near the $2,312 region, which should now act as a key pivotal point. Given that oscillators on the daily chart have just started drifting in negative territory, a convincing break below the said support will make the Gold price vulnerable to weaken below the $2,300 mark and retest the monthly swing low around the $2,285 horizontal zone. Some follow-through selling will be seen as a fresh trigger for bearish traders and expose the 100-day SMA support near the $2,247-2,246 area. The downward trajectory could extend further towards the $2,225-2,220 support before the commodity eventually drops to the $2,200 round-figure mark.