Gold’s downside forces have paused a tad beneath the 1,800 mark with the price resting on the 100-period simple moving average (SMA). A more neutral trajectory is being endorsed by the lack of trend in the SMAs.
The Ichimoku lines are not indicating a clear price direction especially after the price gains from the 1,753 trough, which have been relatively offset by the pullback in the commodity off the 1,832 recent high. The short-term oscillators are tilting a tad to the downside, but directional momentum remains weak. The MACD and the red trigger line have flatlined marginally above the zero threshold, while the RSI is pointing lower, slightly beneath the 50 level. The negatively charged stochastic oscillator is promoting further negative moves in the precious metal.
Maintaining the current price path, downward constraints could commence from the 100-day SMA at 1,792 ahead of the 1,782 nearby obstacle. Sliding lower, the bears may then confront the 1,750-1,763 support zone, which has taken shape from November 2021. If selling interest intensifies, the 1,715-1,724 support band could come under fire, while any further price impetus south may turn traders’ attention towards the key 1,660-1,680 barricade, which has defended the broader positive structure from June 2020.
On the other hand, an immediate fortified resistance section from the cloud’s lower band at 1,800 until the red Tenkan-sen line at 1,806 may impede buyers from reaching the 1,832 high. However, if the price successfully overcomes the 1,832 barrier, the bulls may jump towards the 1,849 obstacle before aiming for the 1,869-1,877 resistance border.
Summarizing, gold is oscillating around the 1,800 mark remaining confined between the 1,676 and 1,917 limits of a ten-month trading range.
