Gold holds above $1,840 so far in European morning trade
The yellow metal has gained for three straight days as it rebounds back above $1,800 from the end of last week but the upside momentum is starting to stall a little with buyers nearing a test of key resistance levels just above $1,850.
The broken trendline support - now turned resistance - @ $1,851 poses the first key challenge with the 200-day moving average (blue line) seen just above that @ $1,855.60.
That marks the first key resistance region for gold buyers after holding a push above the $1,800 handle for the time being. Further resistance is then seen at the 100-day moving average (red line), now @ $1,870.53.
Drilling down to the near-term chart:
Buyers are still keeping near-term control as they have been defending the 200-hour moving average (blue line) on the slight pullbacks since trading yesterday.
As such, that marks a key line in the sand for buyers to keep the upside momentum going or else that will draw sellers back into the picture if the near-term bias switches to being more neutral i.e. trading in between the key hourly moving averages.
The softer dollar this week has benefited precious metals somewhat but one can argue that gains should've been more robust as breakevens are at their highest since 2014 while 10-year real yields are still stuck at around -1.05% over the past few sessions.
That said, the key technical levels also must be respected and for gold to chase further upside momentum then buyers have to break above that first and foremost.
