Gold bears set to retest seven-month-old support near $1,680

Gold’s sustained trading below a horizontal area established since May 2020 gained support from Treasury yields rally to direct bears towards a falling trend line from August, currently around $1,680. However, the $1,700 threshold can offer an intermediate halt whereas double bottoms marked during May and June of 2020, near $1,670 could test the gold sellers afterward.

On the contrary, $1,740 guards the yellow metal’s immediate upside ahead of highlighting the key support-turned-resistance around $1,765-60. It’s worth mentioning that the gold bulls are less likely to be convinced unless witnessing a daily closing beyond a two-month-old resistance line, at $1,792 now. Overall, gold is ready for a south-run but the bears should remain cautious.