Gold prices are continuing the decline from the 1,730 resistance level, dropping back below the long-term descending trend line. In trend indicators, the 20- and 50-day simple moving averages (SMAs) are acting as support and resistance levels for traders, while the MACD is moving sideways in the negative zone. However, the RSI is confirming the recent bearish bias as it is developing beneath the neutral threshold of 50.
Further losses should see the 20-day SMA currently at 1,675, before plunging to the two-and-a-half-year low of 1,615. A drop below this level would reinforce the bearish structure, opening the way towards the next key support at 1,570, registered in March 2020.
In the event of an upside reversal, the 1,730 level could come into focus before being able to re-challenge the 1,808 resistance. Further gains could lead the way towards the 200-day SMA at 1.821, while even higher the outlook may change to bullish.
In a nutshell, the yellow metal has returned to losses and below the long-term falling trend line, maintaining the bearish structure.
