Gold rallied towards a fresh nine-month high of 1,938 in the preceding week, but quickly lost some ground and is currently moving slightly lower. The commodity added more than 20% from the two-and-a-half-year low of 1,615 and is holding well above the short-term simple moving averages (SMAs).
Technically, the MACD oscillator is moving marginally lower near its trigger line in the positive territory, while the RSI is easing after the pullback in the overbought region, suggesting that the momentum is weakening.
More downside pressures may open the door for the 1,895 barrier ahead of the 20-day SMA at 1,870 and the 50-day SMA, which overlaps with the 1,825 support. Any moves towards the 200-day SMA at 1,777 and below that at 1,770 could switch the outlook to neutral in the near-term timeframe.
In the positive scenario, a climb beyond the nine-month peak of 1,938 could drive the market towards the crucial 2,000 round number, reached in April 2022, before challenging the 20-month peak of 2,070.40.
Summarizing, gold is looking predominantly bullish in the medium-term timeframe, and only a decline beneath the 1,770 obstacle may change this view.
