Gold has been in a flying mode over the last couple of days, touching a fresh six-month high of 1282 earlier today. The rally brought the price above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, endorsing the outlook to a strongly positive one.
From the technical point of view, the RSI indicator is moving slightly higher near the overbought zone, while the MACD oscillator dropped below the trigger line but remains well above the zero level, while a bearish correction is possible in the short term.
On the upside, the bulls will likely retry to pierce the 1282 high, with scope to hit a more restrictive area around 1290. Even higher, the highs on June 7 of 1303 could be the next resistance to have in mind. Also, if the price jumps above this peak it could challenge the 1309 hurdle, taken from the high on June 14.
Alternatively, if the price slips lower and start a bearish retracement, immediate support is coming from the 20-SMA around 1275. Should this fail to hold, subsequent declines could open the way for the 1265 support, which stands near the 40-SMA.
Overall, gold prices are still bullish in the short- and medium-term structure as they hold above the four-month ascending trend line.
