The price appeared to be neutral over the last month and it is now consolidating within 1,920, which is the 38.2% Fibonacci of 1,680-2,070.40 and the 1,968 resistance.
The RSI indicator is slightly pointing down in the positive territory, while the MACD is losing momentum below its trigger line.
Immediate resistance to further gains would likely come from the 1,968 barrier. This is also near the 23.6% Fibonacci of 1,978, which holds near the blue Kijun-sen line of the Ichimoku indicator. If there is a break above this area, further resistance could be met around the 19-month high of 2,070.40.
If, however, the upside momentum were to lose steam and if the pair were to reverse lower, support would initially come from the 20- and 40-day SMAs at 1.933. Slipping below this line could take prices towards the 38.2% Fibonacci of 1,920 and the 1,915 support. Failure to hold inside the short-term trading range,would switch the focus back to the downside and attention would increasingly turn to the 1,895 barrier and the 50.0% Fibonacci of 1,877.
In the more medium-term picture, the bullish outlook recently shifted to a neutral one and is likely to stay neutral as long as prices remain within 1,915-1,968.
Gold Consolidates Above Short-Term SMAs; Neutral Bias
Gold Consolidates Above Short-Term SMAs; Neutral Bias
Gold is successfully surpassing the 20- and 40-day simple moving averages (SMAs), which were ready to create a bearish crossover; however, the latest upward move drive the SMAs higher.
