Gold prices are moving higher after the bounce off the 1,750 support level, crawling above the 23.6% Fibonacci retracement level of the down leg from 2,074.89 to 1,676 at 1,770. The stochastic oscillator is approaching the overbought territory, while the RSI is pointing upwards in the negative region. However, the 20- and 40-day simple moving averages (SMAs) have crossed below the 200-day SMA, sending unfavourable signals for the market trend.
Immediate resistance could occur between the 1,800 psychological level and the 20-day SMA currently at 1,810. More advances could take the market until the 38.2% Fibonacci of 1,828, which overlaps with the 200-day SMA, and then towards the 40-day SMA at 1,843. Overcoming these obstacles, the price could next target the 1,855 barrier.
On the flip side, a decrease below the 23.6% Fibonacci of 1,770 could open the door for the 1,750 support and the 1,723 level, registered in April 13. Below the latter, the 1,676 low could attract attention, taken from the low on March 8.
In conclusion, the yellow metal is creating its fourth green day in a row, though in the broader picture the price has been in a declining mode since June 1.
