Gold Hovers Within SMAs In Horizontal Trajectory

Gold is struggling to remain above the 1,800 handle and has been still hovering within a consolidation area of 1,723-1,834 since June 16. The simple moving averages (SMAs) are generally flat and converging, implying a more neutral price behavior.



Technically, the RSI is flattening around the neutral threshold of 50, while the stochastic is heading south towards the oversold region.


If the price closes above the 200-day SMA and the 1,800 level, nearby upside resistance could come from 1,814. By breaching this level, buyers may attempt to challenge the channel’s upper boundary at 1,834, just ahead of the 1,855 barrier. By overcoming this reinforced border, the price could then hit the 1,918 barrier.


On the downside, sellers may find immediate support between the 20- and 40-day simple moving averages (SMAs) around 1,775 before dropping below the 1,760 support level. The support level of 1,676 may come into focus if the price falls below this strengthened buffer zone before the bears make an attempt to test the support level of 1,723 again.


To sum up, the short-term outlook for gold remains neutral and within a broad range of 1,723-1,834. Only a jump above 1,834 may shift the outlook to bullish or a decline beneath 1,723 may open the door for more decreases.


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