Gold has been in a downtrend since early June. The precious metal currently trades below the Ichimoku cloud while it hit a near two-month low of 1217.33 in yesterday’s trading.
Turning to the Ichimoku analysis, the negative alignment when the Tenkan-sen line (red) crossed below the Kijun-sen line (blue) in late June is still in place. This negative short-term signal is also supported by the MACD. Specifically, the indicator is below zero, as well as below its red signal line.
If the price advances, a barrier to the upside might be formed by the 200-day moving average (MA) and Tenkan-sen line, currently spanning from 1233.13 to 1237.66. Further up, additional resistance could be provided by the 50-day MA and cloud top, ranging from 1250.34 to 1252.05.
On the downside, yesterday’s low of 1217.33, combined with the near four-month low of 1214.17 from May 9, might offer support. If this area is violated, the focus would shift to the area around the 1200 psychological level for additional support.
Regarding the medium-term picture, it currently looks neutral with the price ranging sideways since the start of the year.
Overall, the short-term outlook is bearish and the medium-term is neutral.
