This week saw a more than 3.8 percent decline in gold prices, with aXAU/USD on pace for the biggest weekly drop since June 2020.
The decline brings the sell-off streak to four straight weeks, and it pushes the price into crucial resistance for a multi-year uptrend that has been extending from the 2018 lows.
The bulls’ last line of defence is here, so we’re keeping an eye out for any potential price inflections into this crucial technical area.
The final line of defence for the 2018 uptrend, multi-year trendline support, is being tested by gold as it searches for a downward inflection.
From a trading perspective, this is a good area to lower protective stops and reduce short exposure; however, a close above 1791 is required to eliminate any potential downside exhaustion.
