Gold prices rebounded from the five-month low of 1,764 at the end of November, taking the price above the short-term simple moving averages (SMAs), though, the metal is currently retreating.
The RSI indicator is heading down after it touches the overbought territory, suggesting a downside pullback, while the stochastic oscillator is dipping, approaching the bearish zone. However, the red Tenkan-sen line is holding above the blue Kijun-sen line, indicating more gains.
If there is an advance above the latest high, immediate resistance could come from the 1,880 barrier before managing to challenge the 1,900 psychological number. Breaching these obstacles, the bulls could move until the 1,935 hurdle.
On the flip side, the first support is the 23.6% Fibonacci retracement level of the up leg from 1,764 to 1,875 at 1,849, which holds marginally below the 20-period SMA. Beneath the latter, the 100-period SMA currently at 1,838 could next come in spotlight, while not too far behind are the 38.2% Fibonacci of 1,832 and the 40-period SMA. More losses could take the bears until the 50.0% Fibonacci at 1,819 and the 61.8% Fibonacci at 1,807.
Concluding, the yellow metal has been in an upside retracement in the very short-term, while in the broader outlook the price has been in a bearish tendency since August 07.
