The falling wedge reversal/bullish breakout has failed to put a bid under gold, leaving the yellow metal flatlined below the descending (bearish) 20-day moving average (MA) of $1,297.
Also, the dollar (DXY) fell to a two-week low of 93.42 yesterday, still the metal failed to close above the 20-day MA. It is worth noting that gold has failed to close above the 20-day MA nine times in the last three weeks.
Thus, a bullish move will likely gather pace once the metal has pierced the 20-day MA in a convincing manner. However, the market looks indecisive as indicated by yesterday’s doji candle.
Gold Technical Levels
Support: $1,294 (previous day’s low), $1,288 (June 1 low), $1,282 (May 21 low).
Resistance: $1,297 (20-day MA0, $1,300 (psychological hurdle), $1,308 (200-day moving average).