Gold is starting to see immediate pressure to the downside after struggling to hold gains above the key 1320 level. The commodity weakened following the peak just below 1326 and then turned lower to stabilize around 1316.
Looking at the 4-hour chart, the immediate focus is near the 1306 level, which has provided support recently. Major support is seen at the key psychological level at 1300. Falling below this would erase the short-term bullish outlook. The RSI and stochastic are moving lower, suggesting that upside momentum has weakened for now.
Prices need to breach 1320 to open the way for a move towards last week’s high of 1325.97. A rise above this would confirm the bullish bias and shift the focus to the next peak of 1357.47 from September 2017.
The positively aligned 50 and 200-period moving averages support a bullish outlook for gold but in the near term, the bias remains neutral for now and prices are likely to move into a range trading mode, likely between 1313 and 1326.
