Gold gained some ground on Wednesday after touching a near two-week low of 1,189.50 the previous day.
The RSI is largely moving sideways in support of a neutral picture in the short-term.
Given a move above the middle Bollinger line – a 20-day moving average line – at 1,195.91, additional resistance to advances may come around the 1.200 mark which may hold psychological significance. Further above, the focus would shift to the area around the current level of the 50-day MA at 1,218.23; this is where the upper Bollinger band also lies, while the zone around this encapsulates the four-week high of 1,214.15 recorded in late August as well.
On the downside, immediate support may occur around Tuesday’s near two-week low of 1,189.50, while further below the region around the lower Bollinger band at 1,174.60 would be eyed. Lower still, 1,160.03, the precious metal’s lowest since January 2017 hit around mid-August would come into scope.
The medium-term picture is clearly bearish, with trading activity taking place below the 50- and 100-day MA lines and confirming the negative signal given by May’s bearish cross when the 50-day MA moved below the 100-day one.
Overall, the near-term bias appears neutral, while the medium-term outlook is bearish. For perspective, the yellow metal lost 14.3% after touching its highest since July 2016 in late January and is trading lower by 9.0% in the year-to-date.
