Gold has rebounded on the 1276.56 support level in the preceding week after the downfall from the almost seven-month high of 1298.47. 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.
Technically, the RSI indicator is sloping marginally down while in positive territory and the MACD oscillator holds below the trigger line in the bullish area. Currently, the price action has turned negative despite the latest upside pullback.
Should the price edge higher, it would likely retest the seven-month high of 1298.47 and then the 1300 strong psychological barrier. 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 mid-level of the Bollinger band (20-simple moving average) around 1288. Should this fail to hold, subsequent declines could open the way for the lower Bollinger band around 1280, which stands near the 40-SMA.
Concluding, gold prices are still bullish in the short- and medium-term as they are holdingabove the five-month ascending trend line.
