Gold plummeted below 1300 over the previous week, while today the price is moving around the fresh one-month low around 1285. The March 7 support line seems to be acting as support near 1280.63, though, the risk remains neutral to slightly positive as the MACD is flattening around the trigger line, while the stochastic oscillator is ready for a bullish cross with the %K and %D lines.
If the market corrects higher, the bullish action may pause initially near the 20-simple moving average (SMA) currently at 1292.69 before attention shifts to the 1297 – 1303 critical resistance area. A rally on top of the latter and more importantly above the 40-SMA would probably stage new buying pressure, with the price moving next to the 1312 peak.
On the other hand, violating the six-week low of 1280.63, could see losses extending towards the 1276.56 barrier, taken from the lows on January 24. Even lower, the bears could stall around 1265, registered on December 20.
Overall, the yellow metal is still hovering below the bearish cross within the short-term SMAs, suggesting more losses, however, indicators seems to be in confusion as there is no clear tendency in price action over the last month.
