- Gold meets 200-period SMA, which acted as strong support line
- Stochastic dives to oversold region and MACD falls below trigger line
Gold prices are edging lower, beneath a short-term ascending trend line, meeting the 200-period simple moving average (SMA) at 2,026.60, which is ready to post a bullish cross with the 50-period SMA in the 4-hour chart.
If there is an attempt below the aforementioned lines and the 2,025 support, then the commodity could battle with the 2,015 region before tumbling towards the 1,995 barricade.
The technical oscillators are endorsing the negative momentum in the price. The MACD is standing beneath its trigger line, the stochastic is diving in the oversold area and the RSI is moving horizontally below the neutral threshold of 50.
However, in case of a move above the 20-period SMA near 2,030, then the price could rest around the previous peak of 2,039. Moving higher, gold may challenge the 2,045 resistance, taken from the peak on February 7.
Summarizing, the precious metal shifted the positive outlook to a negative one in the very short-term timeframe, but the bigger outlook is still in a neutral phase within 1,974-2,088.
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