Gold is currently trading around 1816, tracing the mid-Bollinger band higher, trying to keep intact the gradual climb in the commodity from the December 15 trough of 1,753. The bullish 50- and 100-period simple moving averages (SMAs) are endorsing the last three weeks of gains in the precious metal.
The short-term oscillators are indicating a phase where positive momentum has yet to show any decisive signs of weakness. The MACD has overstepped the red trigger line again slightly above the zero threshold, while the RSI is improving in the positive region. The stochastic lines are in overbought territory, hinting that upside impetus may start to abate but have yet to confirm this. Nonetheless, it would be wise for traders to keep a watchful eye on bullish pressures as congested upside obstacles are ahead, which could pose a threat to additional progress.
Maintaining the current trajectory, the 1,821 immediate barrier could delay the test of the latest high of 1,821, where the upper Bollinger band also resides. Successfully steering higher and reinforcing the recent uptrend, the bulls could then face the 1,838-1,843 resistance band ahead of the 1,849 border. Conquering these obstacles may encourage buyers to propel the price towards the 1,865 and 1,871 highs, near the 5-month high level of 1,877.
If the price fades from the 1,821 barrier, initial downside hindrance could occur at the 50-period SMA at 1,810 ahead of the key 1,796-1,800 support section. Retracing beneath this fortified zone, the bears may then target the 1,785-1,790 support base. If a deeper retracement unfolds, the 1,774 level could be pursued by sellers before the 1,753 trough even starts to draw traders’ focus.
Summarizing, gold is currently exhibiting a bullish tone above the 1,800 mark and the SMAs, implying only minor hints that bullish backing is lacking strong upside force.
