Gold prices have been in a declining direction after strong rally towards the all-time peak of 2,074.89, but they found strong support at the 1,911 barrier over the last two weeks. The price is trading below the simple moving averages (SMAs) and the Ichimoku in the 4-hour chart. Furthermore, the RSI is heading south in the bearish territory, however, the MACD is moving horizontally below the zero line.
A strong push below the 1,911 support would drive the bears towards the 1,863 level, taken from the previous low registered on August 12. Breaching this line, the 1,818 and the 1,789 obstacles are coming next.
On the opposite site, an advance run above the 20-period SMA and the blue Kijun-sen line could open the door for the 1,953 resistance, which overlaps with the 40-period SMA and stands near the Ichimoku cloud. Even higher, the bulls could turn their eyes on the 100-period SMA currently at 1,974.72 before rising towards 2,015.
In conclusion, the yellow metal is losing momentum after the sharp increase to the record high. The technical indicators are also endorsing a downside correction but a climb above the SMAs may change this view again.
