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Gold Moves Down from Short-term SMAs

Gold prices are moving lower after several failed attempts to jump above the short-term simple moving averages (SMAs). The price remains below the long-term descending trend line and the technical oscillators currently confirm the bearish structure. The MACD oscillator is moving sideways below the zero level, while the RSI is flattening in the negative region.

To the downside, immediate support could come from the two-and-half-year low of 1,615, which was tested two times over the last month. Moving lower, the troughs of March 2020 at 1,570 could be revisited ahead of the 1,450 bottom.

Otherwise, if buyers push above the moving averages, initial resistance could come from the 1,687 barrier, which overlaps with the downtrend line. Climbing higher, the 1,730 resistance could interrupt the test of a key region from the 200-day SMA and the 1,808 hurdle.

Summarizing, the very short-term bias has turned neutral but if the price shifts above the 1,687 barrier, the picture may turn positive.

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