Gold prices have been moving sideways with very weak momentum over the last couple of sessions, remaining below the 20- and 40-day simple moving averages (SMAs). The market has been in a trading range since June 16 and regarding the technical indicators the stochastic is heading south, approaching the oversold zone, while the RSI is flattening in the negative region.
If the price dips further, immediate support for the bears could be the 1,723 support level before increasing the negative momentum towards the 1,676 barrier. More declines could open the way for a retest of the 1,564 hurdle, registered in April 1.
On the other side, a successful climb beyond the short-term SMAs could challenge the 200-day SMA, which overlaps with the 1,800 significant resistance. Overcoming this obstacle, the commodity could meet the upper boundary of the channel at 1,834 before adding to the optimism for a penetration of the consolidation area to the upside, hitting 1,855. The next target could then be at the 1,918 high.
Summarizing, the precious metal is neutral and only a decisive close above the 1,834 resistance or below the 1,723 support may change the current picture.
