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Gold Fails To Improve The Bullish Move In Near-Term

Gold prices are declining following the pullback off the five-month high of 1,877 that was posted last Tuesday. The stochastic is approaching the oversold territory with strong momentum, while the RSI indicator is heading south in the positive region. However, the 20- and 40-day simple moving averages (SMAs) crossed the 200-day SMA higher in the previous sessions.

Should prices reverse lower, immediate support could come at 1,834 ahead of the 20-day SMA currently at 1,825. A drop below this area would take the price closer to the 1,814 support before meeting the 200- and then the 40-day SMAs around 1,795. Further losses would open the way towards the 1,760 barrier.

To the upside, there is immediate resistance at the five-month peak of 1,877 before the bulls drive the price towards the 1,916 high, reached on June 1. Even higher, the bullish bias would be endorsed if the commodity touches the 1,965 hurdle.

All in all, the yellow metal has been in an ascending movement since September 29 and any closures above 1,916 could confirm the recent bullish bias.

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