Gold prices are moving sideways in the short-term, developing within the 23.6% Fibonacci retracement level of the down leg from the record high of 2,074.89 to 1,676 at 1,770 and the 1,800 psychological number.
Looking at the technical indicators, the stochastic oscillator is headed north following a positive crossover within the %K and %D lines, while the RSI is attempting to gain traction in negative area. However, the MACD continues to lose ground beneath its trigger and zero lines. The 20- and 40-day simple moving averages (SMAs) completed a bearish cross in trend indicators, suggesting additional bearish actions.
If the yellow metal plunges below the 1,760-1,770 support area, the 1,723 barrier could come next before testing the 1,676 restricted zone, which was established in early March.
In the positive scenario, a successful ascent beyond the 1,800 handle may push the bulls all the way to the 38.2% Fibonacci level of 1,828 ahead of the short- and long-term SMAs, which are all between 1,833 and 1,847. The 1,855 resistance and the 50.0% Fibonacci at 1,875 could witness more positive pressures.
To summarize, gold prices have a negative-to-neutral bias, and any bullish rises above the SMAs could support an upward trend. A sell-off below 1,676 on the other hand, might push the market much lower.
