Gold has pushed above the 1,900 hurdle today to a four-and-a-half-month high of 1,910, extending the nearly two-month uptrend, which began from the 1,678 trough. The soaring simple moving averages (SMAs) are defending the bullish structure, while the stabilization in the Ichimoku lines is reflecting a minor pause in growing positive sentiment.
The short-term oscillators are mirroring the marginal dwindling in the price above the 1,900 mark; however, this minor stalling seems incapable at the moment in overturning the commodity’s bullish picture. The MACD, far above the zero line, is holding north of its red trigger line, while the RSI is labouring to nudge back above the 80 level. Currently, the stochastic oscillator lines are in overbought territory, and the %K line has dipped below its %D line but has yet to confirm decisive dwindling in the price’s bullish mood.
If the commodity maintains its price ascent, initial upside constraints could transpire from the 1,918 barrier ahead of the 1,928 high, both last seen around early January. In the event these levels fail to mute growing buying interest, the price may then propel towards the 1,938-1,941 resistance band before targeting the January 6 peak at 1,959.
To the downside, preliminary support may develop at the 1,900 handle ahead of the area between the Ichimoku lines from 1,890 until 1,887. A further retreat in the commodity’s price could tackle downside limitations in the region of 1,869-1,875, which involves the Ichimoku cloud and the 50-period SMA. Should the price sink even lower, sellers’ efforts could be challenged by the key support section of 1,844-1,852, reinforced by the cloud’s floor, the 100-period SMA and the overlapping ascending line, pulled from 1,678.
Concluding, in the short-term timeframe, gold is sustaining a firm bullish bearing above the SMAs and the 1,869-1,875 support zone. Yet, a successful break below the 1,844-1,852 zone could boost negative tendencies.
