Gold has been swinging higher in the four-hour chart since hitting a three-month low of 1,892 at the end of June, rising as high as 1,940 today.
The precious metal is hovering around a familiar constraining zone and near the 200-period simple moving average, which caused a soft decline over the past few hours. The 23.6% Fibonacci retracement of the previous downleg is cementing that wall as well. Hence, traders might wait for a clear close above the 1,936-1,940 boundary before they target the upper band of the short-term bullish channel at 1,947. A successful move higher could last till the 38.2% Fibonacci mark of 1,963, while a steeper rally could approach the 50% Fibonacci of 1,985.
From a technical perspective, the short-term bias is still positive, as the RSI and the MACD are comfortably above their neutral levels. However, some caution might be needed as the indicators seem to have lost some momentum.
A pullback below 1,936 could pause somewhere between the 20- and 50-period SMAs at 1,927 and 1,922 respectively. If sellers persist, the price may slide towards the channel’s lower band at 1,912. Even lower, the bears might pressure the 1,900-1,896 floor with scope to mark new lower lows, likely around the 1,870 handle if the 1,885 low from March 15 gives way.
Summing up, the short upward trend in gold may keep buying interest intact in the coming sessions. A continuation above 1,947 could boost market sentiment, whilst a slide below 1,912 could add more pressure on the market.
