Gold prices have been in a descending movement over the last six-and-a-half months after the touch of the record high of 2,074.89. In the short-term, the price is battling with the 20-day simple moving average (SMA) and the Ichimoku lines.
Technically, the stochastic oscillator is losing ground and is slipping from the overbought territory, while the RSI indicator is turning marginally down below the 50 level.
In case of further selling interest, the precious metal could find support at the 1,676 barrier, taken from the latest low before plunging towards 1,564, taken from the trough on April 2020. More aggressive bearish moves could drive investors towards 1,451, being the bottom from March 2020.
On the other hand, a successful attempt above the 23.6% Fibonacci retracement level of the downward move from 2,074.89 to 1,676 at 1,768 could send the price slightly higher to the 40-day SMA currently at 1,778 ahead of the 1,817 resistance. Above this area, the 38.2% Fibonacci at 1,826 could halt bullish movements. Though, a step higher could help the price reach the 200-day SMA at 1,858.
Gold prices are in a negative mode in the long-term view, while in the very short-term the price is slipping again despite the rebound off 1,676.
Summarizing, any declines below the downward sloping channel would endorse the bearish structure, and only a jump above the 61.8% Fibonacci of 1,919 may change this outlook.
