Gold prices are in a horizontal move after they reached a nine-year peak near 1,817 and remaining above the 20- and 40-day simple moving averages (SMAs). The MACD oscillator is moving sideways above the zero line but it fell beneath the trigger line, while the RSI indicator is flattening slightly below the overbought zone.
If the yellow metal extends its four-month bullish structure above the multi-year high of 1,817 could touch the 161.8% Fibonacci extension level of the down leg from 1,705 to 1,454 at 1,857. More advances could see the September 2011 high of 1,920 acting as the strongest resistance obstacle for the bulls.
In the negative scenario, a drop beneath the SMAs and the Ichimoku lines could hit the 1,748 support before meeting the 23.6% Fibonacci retracement level of the upward wave from 1,454 to 1,817 at 1,730. Below that, the 1,705 barrier and the 38.2% Fibonacci of 1,677, could attract attention while a step lower may switch the bullish outlook to neutral.
Summarizing, the commodity has been in a strong rising mode and only a significant decline beneath the 200-day SMA and the 61.8% Fibo of 1,726 may change this outlook.
