Gold prices are in a declining mode after the bounce off the nine-month high of 1,914. The price fell beneath the 20-period simple moving average (SMA) with the technical indicators suggesting a bearish correction. The RSI is holding below a descending line in the positive region, while the MACD oscillator is losing momentum below its trigger line in the bullish area.
AÂ reversal to the downside could stall at the 1,887 support ahead of the 40-period simple moving average (SMA) at 1,884 and the 23.6% Fibonacci retracement level of the upward wave from 1,780 to 1,914 at 1,882. Slightly lower the 1,880 inside swing high from February 15 may halt bearish actions. Further below, the 38.2% Fibonacci of 1,862 could also provide support.
Alternatively, a successful climb above the 20-period SMA could add some optimism for a retest of the nine-month high of 1,914. Even higher, the 1,965 resistance taken from the peak on November 2020 may come into spotlight.
All in all, the yellow metal is printing a negative correction in the very short-term but in the broader outlook is strongly positive.
