Gold Technical Analysis: Extends rejection slide from 100-hour SMA

London (Aug 6)   •  The commodity struggled to build on its positive momentum beyond 100-hour SMA for the second consecutive session and was being capped by resurgent USD demand.

   •  Technical indicators on the 1-hourly chart have started drifting into negative territory, suggesting a continuation of the downward trajectory back towards YTD lows.

   •  Only a sustained move beyond the 100-hour SMA barrier might negate the negative outlook and trigger a near-term short-covering bounce beyond $1220 supply zone.

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