Gold’s recent footing on the 100-period simple moving average (SMA) has kept the precious metal above the Ichimoku cloud and has returned it slightly above the 50-period SMA. Yet, the commodity’s two-week sideways move endures, unable to break out of the 1,739 and 1,660 boundaries. Further displaying the creeping horizontal mode are the unclear signals from the Ichimoku lines in the 4-hour chart.
Looking to the short-term oscillators, they too paint a picture of evaporated directional momentum. The MACD is standing weakened below its red trigger line and just under the zero mark, while the RSI, pointing upwards, holds at its neutral threshold. Moreover, an easing 50-period SMA turning mostly flat, is putting doubt for now, in the bigger positive stance.
If buying interest picks up, initial tough resistance could come from the 1,739 boundary, which has recently managed to keep the ascent at bay. Above this border, the nearby more than seven-year top of 1,746.95 could then prevent a rally primarily encountering the 1,754 high from November of 2012 ahead of the 1,775 resistance of October 2012. Sustained gains may then push towards the barriers around the 1,800 handle.
Alternatively, if sellers manage to steer below the 50-period SMA at 1,705 and the Ichimoku cloud beneath, first to test the drop is the 1,691 low coupled with the upward sloping 100-period SMA. A step lower could meet the 23.6% Fibo at 1,678, prior to challenging the lower boundary of 1,660. Diving past this important low, the 1,643 key trough and the nearby 38.2% Fibo of 1,636 may draw traders’ attention.
Overall, the yellow metal appears to be framed between the 1,739 and 1,660 levels in the very-short-term timeframe
