Gold is recouping some of the losses it posted on Tuesday, hitting the 23.6% Fibonacci retracement level of the down leg from 2,015 to 1,848 at 1,887.
The technical indicators seem to be mixed, as the RSI is sloping upwards in the bearish area, while the MACD is still holding beneath its trigger and zero lines with weak momentum.
If the positive bias continues above the 23.6% Fibo, the price could first meet the 40-period simple moving average (SMA) at 1,896.50, before the 20-period SMA at 1,900 and then the 100-period SMA at 1,906. All of them are acting as strong resistance levels before the yellow metal challenges the 38.2% Fibonacci of 1,911 and the previous high of 1,920. A market stretching above the latter level could open the way for a short-term bullish bias again moving towards the 50.0% Fibonacci of 1,930.
On the flip side, if the bears take the upper hand, crucial support is coming from the two-month low of 1,848 ahead of the inside swing high of 1,818, registered on July 8.
In brief, gold prices have been in a bearish structure since August 18 in the longer timeframe, however, a climb above 1,920 may switch the bias to bullish.
