- Gold flatlines near former resistance
- Short-term bias leans to the downside
- Key support levels hold intact
Gold shifted to the sidelines following the advance towards its May 2023 resistance of 2,051 on Wednesday.
The 20-period simple moving average (SMA), which has been cooling downside pressures recently, seems to be cracking at 2,038, but the support trendline drawn from November’s lows could still come to the rescue at 2,027 despite the negative trajectory in the RSI and the MACD. Then, the resistance-turned-support region of 2,006 might prevent an outlook deterioration ahead of the 200-period SMA at 1,983.
Alternatively, should the bulls set another strong footing around the 20-period SMA, they may push for a close above the 2,050 ceiling. A successful penetration higher could initially stall near the resistance line from September 2023 at 2,065 before heading for the 2023 record high of 2,079. If buying interest persists, the uptrend could gain new legs in the uncharted territory, likely bringing the 261.8% Fibonacci extension of the latest downleg at 2,126 under the limelight.
In summary, gold is preserving an upward trajectory in the short-term timeframe. While the falling technical indicators are reflecting some discomfort among traders, only a pullback below 2,006 would officially violate the positive structure.
, which has been cooling downside pressures recently, seems to be cracking at 2,038, but the support trendline drawn from November’s lows could still come to the rescue at 2,027 despite the negative trajectory in the RSI and the MACD. Then, the resistance-turned-support region of 2,006 might prevent an outlook deterioration ahead of the 200-period SMA at 1,983.){kind=link}