Gold prices have lost its positive momentum after it reached the four-month high of 1,875. In the short-term, the market could retain the neutral-to-bearish trading as the RSI is ticking down around the overbought region and the stochastic is moving lower towards the oversold area. The medium-term bullish trend though could stay in place given that prices continue to fluctuate above the Ichimoku cloud and the simple moving averages (SMAs).
Should the pair stretch south, 1,855 could provide immediate support before the pair touches the 20-period SMA at 1,850. A significant step lower could bring the bearish sentiment into play, sending the price probably towards the 40-period SMA at 1,840 and the 23.6% Fibonacci retracement level of the upward wave from 1,678 to 1,875 at 1,828.
On the flip side, the four-month peak of 1,875 may halt upside movements as it did in the previous sessions. If traders continue to buy the pair, the price could rise until the 1,959 barrier.
To sum up, the market is expected to hold neutral-to-bullish in short-term and bullish in the medium-term.
