Gold has been trending downwards since early March when the price peaked at the 19-month high of 2,070. Although the price managed to halt its decline and currently experiences a consolidation phase, the technical picture seems to be deteriorating for the precious metal.
The momentum indicators suggest that bearish forces continue to hold the upper hand. Specifically, the MACD histogram is currently beneath both zero and its red signal line, while the RSI is hovering in the negative zone.
Should selling interest intensify further, the price could encounter immediate support at the recent low of 1,915. Falling beneath this floor, the bears could target the 1,910 barrier before the spotlight turns to the March low of 1,890. Further downside moves may then cease at the 1,878 hurdle.
Alternatively, if buyers re-emerge and regain control, initial resistance could be met at the recent high of 1,945. Conquering this barricade, the price might ascend towards the March peak of 1,965. Higher, 2,010 could prove to be a tough obstacle for the bulls before 2,052 appears on the radar.
Overall, gold has been rangebound in the last three weeks, but broader near-term risks remain tilted to the downside. Therefore, a dive beneath the 1,890 floor is needed to boost sellers’ hopes for a sustained downtrend.
