Gold is trading around the mid-Bollinger band at 1,707 after fading for nearly a month from the multi-year high of 1,746.95. The precious metal seems to be lacking direction as it plots lower highs and higher lows. Yet, the technical oscillators and the upward slopes in the simple moving averages (SMAs) appear to support a neutral-to-bullish picture for now.
The MACD, has remained in the positive section but is below its red signal line, while the RSI continues to hover above its neutral threshold. Glancing at the stochastics, they paint a recovering picture as they creep higher.
Steering above the mid-Bollinger band of 1,707, buyers could meet early resistance from the very short-term descending line and the 1,723 high. Pushing above, the upper Bollinger band at 1,734 could produce some friction ahead of the 1,739 high and 7-year peak of 1,746.95. Overcoming this summit, the 1,754 resistance from November 2012 may be tested before the focus turns to the 1,775 peak from October of 2012.
Should sellers push down, first support could occur at the lower Bollinger band residing at 1,678, which is the 23.6% Fibonacci retracement of the up leg from 1,455.17 to 1,746.95. Dipping underneath could encounter the 1,669 and 1,660 key lows, ahead of a support trench from the 50-day SMA until the 38.2% Fibo of 1,635 that also encompasses the important trough of 1,643.
All in all, the medium-term timeframe is positive. Yet, in the very-short-term neutral-to-bullish picture, a break either below 1,669 or above 1,723 would be required to commence a course.
