Gold has been in an uptrend in the four-hour chart, which temporarily paused near the 1,914 territory. However, gold spiked higher as markets turned pessimistic over Credit Suisse’s solvency, while technically, the ascending 50-period period moving average (SMA) is positively closing the gap with the 200-period SMA.
The momentum indicators are endorsing this bullish breakout. Specifically, the RSI is ascending sharply within the overbought zone, while the stochastic oscillator is sloping upwards after posting a bullish cross.
Should gold extend its advance, the 1,935 resistance territory could curb its upside. Surpassing that zone, the price might ascend to test the 1,948 barrier. Failing to stop there, the bulls might aim for the February peak of 1,959.
On the flipside, if sellers re-emerge and push the price lower, the resistance region of 1,914 could now act as support. Diving lower, the commodity could face the recent low of 1,886 before the spotlight turns to 1,872. Even lower, the 1,858 hurdle could provide downside protection.
Overall, gold appears ready to edge higher as the completion of a golden cross could boost bulls’ appetite. Nevertheless, short-term oscillators are currently approaching overbought territories, so a move to the downside could not be ruled out.
