Gold prices are struggling to gain positive momentum after its fast rebound stalled around the 40-period simple moving average (SMA) in the 4-hour chart.
The downside reversal in the RSI and the slowdown in the Stochastics justify the diminishing buying pressure, though both remain above their neutral thresholds, keeping the short-term risk skewed to the upside. However, the bullish move that pushed prices above the 20- and 40-period SMAs signals an improving structure.
Should selling forces strengthen, the 20-period SMA around 1,700 could come under the spotlight. Moving lower, the nine-month low of 1,676 could next add some footing ahead of the 1,668 barrier.
Alternatively, a move higher towards the 1,740 resistance would brighten the bullish correction, pushing the price towards the 1,760 level. Beyond that, the rally may gear up to the 100-period SMA at 1,797.
In brief, the yellow metal is facing a weakening positive correction, where a drop back below the short-term SMAs is expected to enhance selling interest.
