Gold got immediately congested within the $1,837 – $1,855 region following last week’s bounce off the $1,805 low.
The 20- and 200-day simple moving averages (SMAs) are currently limiting bullish pressures, while the RSI and the MACD provide little direction about the next move in the price as the former is drifting sideways below its 50 neutral mark and the latter remains stable within the negative territory.
If buyers claim the $1,855 boundary, the next challenge could develop within the $1,870 – $1,880 territory formed by the 50-day SMA and the surface of the short-term bullish channel. Notably, the upper boundary of the medium-term bearish channel is positioned within the same area. Therefore, any upside breakout from here could be critical for approaching the $1,910 barricade. Even higher, the ascend may pause somewhere between $1,935 and $1,950.
On the downside, a close below $1,837 may immediately stabilize around $1,825. Then, the lower bar of the upward-sloping channel may come to the rescue around $1,810, preventing a sharper decline towards the $1,780 mark, where the broken long-term resistance trendline stretched from the 2020 record high of $2,079 is also placed.
In brief, gold is preserving a neutral bias in the short-term picture, with traders waiting for a sustainable move above $1,880 or below $1,810 to get fresh direction in the market.
