Gold has lost its positive momentum after the pullback off the 1,815 resistance in the very-short term, but is still remaining above the 20- and 40-period simple moving averages (SMAs). The market could retain the negative trading as the RSI is pointing downwards in the positive region, while the stochastic is heading down as well.
Should the pair stretch south, the 40- and then the 20-period SMA could provide immediate supports at 1,796 and 1,793 respectively. A step lower could bring the bearish sentiment back into play, sending the price probably towards 1,760. If the sell-off extends, attention could then turn to the inside swing high of June 2020 at 1,744.
On the flip side, the 1,815 resistance may halt again upside movements ahead of the 100-period SMA at 1,835. If traders continue to buy the commodity, the price could rise until the 1,876 barrier.
In the medium-term picture, the precious metal has been trading bearish in the past almost two months after the drop below the 1,959 barrier. Still, if the market manages to cross above 1,900, the bearish outlook could switch into a bullish one.
