Gold prices experienced a steep bearish move in the preceding week, losing more than 5% from the recent ten-month top of 1,960 and breaking the uptrend line to the downside. The price found a support level near the 50-day simple moving average (SMA) at 1,864, failing to continue the bearish move. The RSI is picking up speed near 50; however, the MACD continues to distance itself below its red signal line.
A reversal to the downside could stall at the 1,825 barrier, before challenging the crucial 200-day SMA at 1,765. Further below, the 1,725 region could also provide support, triggering another sell-off in the longer-term timeframe.
Otherwise, a successful rebound off the 50-day SMA could open the way towards the inside swing peak of 1,895 ahead of the 20-day SMA at 1,914. Higher still, the almost ten-month zenith of 1,960 would increasingly come into scope; not far above this point lies the 2,000 round number as well, shifting the outlook to a more bullish one.
The medium-term picture continues to look predominantly bullish, with trading activity taking place above both the 50- and 200-day SMAs.
Overall, the short-term outlook appears mostly bearish, but the medium-term one remains bullish for the most part.
