The gold rate rose during the last trading session, but ran into an obstacle at the 50-day moving average. The 50-day EMA is a technical indicator that many traders pay attention to, and the fact that the precious metal has retreated from there indicates a depletion of momentum. This is an interesting move as the market has recently recovered strongly from a massive sell-off. The 200-day EMA is also at $ 1,870 and is currently serving as a solid upper range limit.
If gold falls below the bottom of the candle, it is likely to move closer to $ 1.750, which was previously a significant support line. If this does not stop the decline, the precious metal will head towards the lows set in the last couple of weeks. The $ 1.680 level is an area where the gold metal bounced a couple of times and formed a technical double bottom pattern there. A break below this value will open the possibility of a move down to the $ 1.500 line, which will undoubtedly attract the attention of the masses.
Finally, I would like to recall the strong negative correlation between the US currency and the gold markets in general, therefore, if the dollar continues to strengthen, the precious metal will move down.