Gold is trying to regain some losses in the very short-term but is remaining below the 20- and 40-day simple moving averages (SMAs) in a descending channel. The market could reverse lower as the stochastic is turning lower after the pullback on the overbought zone, however, the RSI is pointing upwards in the negative territory.
Should the pair stretch north, the 20-day SMA could provide immediate resistance at 1,750 ahead of the 1,764 barrier. A step higher could meet the 40-day SMA at 1,796, which stands below the 1,817 barrier and the 200-day SMA currently at 1,858.
On the flip side, the 1,668 support may halt again downside movements ahead of the 1,564 hurdle, registered in April 2020. Steeper declines could drive the market towards the 1,451 support level.
In the long-term picture, the precious metal has been trading bearish in the past seven months after the drop below the record high of 2,074.89. Still, if the market manages to cross above 1,900, the bearish outlook could switch into a neutral-to-bullish one.
