Gold prices are retreating after the rally towards a fresh almost-nine-month high of 1,928, holding well above the short-term upward sloping channel, suggesting more aggressive buying interest. The MACD oscillator is extending the positive momentum above its trigger and zero lines; however, the RSI is ticking down in the overbought region, indicating a bearish correction.
Immediate support is being provided by the 1,880-1,890 region before resting near the 20-day simple moving average (SMA) currently at 1,840. However, should prices dip lower, the next support would likely come from the 1,825 barrier ahead of the 50-day SMA at 1,806 and the crucial 200-day SMA at 1,778.
In case of an upward attempt, the 2,000 psychological mark, registered in April 2022 would likely be a strong obstacle for the bulls before moving towards the 20-month high of 2,070.40.
In the medium term, the bullish outlook remains strongly intact, with the moving averages all pointing upwards. However, should prices decline below the 200-day MA, this would risk shifting the medium-term picture to a more neutral one.
