Gold prices are easing after the strong bounce off the four-month low of 1,680 in the preceding week, driving the market near 1,780. The stochastic oscillator is approaching the overbought territory, while the RSI is ticking marginally down around the neutral threshold of 50.
If the buying interest persists, immediate resistance could come from the 20- and 40-day simple moving averages (SMAs) at 1,790 before touching the key level of 1,800. Slightly above this hurdle, the 200-day SMA at 1,814 may halt the bullish actions before meeting the 1,834 resistance. Even higher, the 1,855 inside swing low from June 4 and the 1,918 high from June 1 could attract traders’ attention.
In the negative scenario, a drop lower could head the price south towards the 1,723 support before resting near the four-month low of 1,680 and the 1,676 barrier, reached on March 8.
To sum up, the yellow metal is trying to gain some ground despite today’s bearish open. In the broader outlook, the market is lacking a clear direction.
