- Gold remains below 50-day SMA
- MACD and RSI mirror the market’s waning momentum
Gold prices have been developing with weak momentum over the past few sessions, hovering beneath the 50-day simple moving average (SMA) and the 2,605 support level. The pair remains well above the medium-term ascending trend line, but the technical oscillators are mirroring the sideways move in the market. The RSI is standing marginally beneath the neutral threshold of 50, while the MACD is standing above its trigger line but still below the zero level.
If the price successfully breaks the 2,720 barrier and overcomes the 50-day SMA at 2,605, it could potentially reach the 2,750 area. Should traders continue to buy the commodity above that peak, resistance could then run toward the all-time high of 2,790.
A reversal to the downside, however, could find immediate support at the 2,605 hurdle, while a slightly lower diagonal line at 2,580 could also come into view. If the diagonal line fails to halt bearish movements, the next target could be the previous trough of 2,531, increasing the likelihood of steeper bearish corrections.
Turning to medium-term trading, the outlook is still positive, despite the recent weakness. On the other hand, a significant decline below the 200-day SMA, currently at 2,440, may switch the outlook to bearish.
 and the 2,605 support level. The pair remains well above the medium-term ascending trend line, but the technical oscillators are mirroring the sideways move in the market. The RSI is standing marginally beneath the neutral threshold of 50, while the MACD is standing above its trigger line but still below the zero level.){kind=link}