Gold has been underperforming in the past few days, breaking back below the 20-day simple moving average (SMA) around 1,985. When looking at the bigger picture, the price is strongly bullish in the long-term timeframe as it is holding well above the ascending trend line, which has been drawn from the low in November 2022.
Based on technical oscillators, momentum is titled to the downside as the RSI is approaching the neutral threshold of 50, while the MACD is standing beneath its trigger line in the positive region.
If price action remains above 1,935 (immediate support) and the 50-day SMA, there is scope to test the previous 13-month high of 2,047. Clearing this key level would see additional gains towards the restrictive region of 2,074.90-2,100.
If the 1,935 support fails, then the focus would shift to the downside towards the lower boundary of the Ichimoku cloud at 1,906, which overlaps with the uptrend line. If this line is breached, it would increase downside pressure and bring about a reversal of the trend. From here, the commodity would be on the path towards the 200-day SMA near 1,805.
Overall, gold has been positive since peaking at 2,047. Near-term weakness is expected to remain as long as price action takes place beneath 2,000.
 around 1,985. When looking at the bigger picture, the price is strongly bullish in the long-term timeframe as it is holding well above the ascending trend line, which has been drawn from the low in November 2022.){kind=link}