November 9,2022 02:00 AM ET
By:AnalysisWatch
Gold prices are trading lower in early trading on Wednesday. Will the yellow metal regain critical resistance at the 100-day moving average of $1,717? FXStreet's Dhwani Mehta analyzes the XAUUSD chart.
The $1,700 mark could offer strong support.
"The 14-day Relative Strength Index is still holding above the midline, suggesting that the pullback is likely to be temporary and could offer a good buying opportunity for traders who may have missed the recent rally."
"A daily close above the critical 100DMA is needed to trigger further upside toward the October high of $1,730." Immediate resistances, however, are seen at the $1,710 round figure and multi-week highs at $1,717.
"To the downside, the $1,700 mark could offer strong support, below which a sharp drop towards the 50DMA at $1,674 cannot be ruled out." Before that, the previous week's high of $1,683 could come to the bulls' rescue.
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