Gold prices are advancing somewhat after the downfall towards the two-and-a-half-month trough of 1,504.52 that was posted last Friday.
The technical indicators are suggesting a bullish correction in the 4-hour chart as the RSI is rising, surpassing the oversold zone, while the stochastic posted a bullish crossover within its %K and %D lines. It is noteworthy, that the 40-period simple moving average (SMA) created a negative cross with the 100-period SMA, indicating a longer-term downtrend.
If the price climbs above the 1,547 immediate resistance, it would move towards the 20-period SMA, which coincides with the 1,597 barrier. Moving higher, the commodity could flirt with the 1,632 level, which is near with the bearish cross of the 40- and 100-period SMA. Clearing this zone, the price could edge higher to 1,671 mark, taken from the peak on March 11.
Alternatively, a drop lower again could reach the two-and-a-half-month low of 1,504.52. Below that, the yellow metal could see the 1,486 support, ahead of the 1,470 key level, identified by the bottoms on December 2019.
Summarizing, gold prices seem to be in a negative trend in the short-term, despite the latest upside move, and only a decisive close beneath the two-and-a-half-month bottom would endorse the bearish structure. Otherwise, an increase above the moving average lines could change the outlook back to bullish.
