Gold opened Wednesday’s session gently up after finding fresh buying interest around the 1,660 level.
There is a ray of hope that market sentiment may improve as the RSI and the MACD are trying to change direction to the upside.
Yet, some caution is still required as the 1,670 zone seems to have resumed its resistance role. The 20-period simple moving average (SMA), which ceased bullish pressures last week, is also within breathing distance. Should the recovery continue above the 50- and 200-period SMAs currently both at 1,690, the price will head for the 1,700 round level and then for the 1,712 barrier.
In case the 1,660 floor collapses, the bearish wave could see a continuation towards the 1,653 area. A steeper decline could halt near 1,640, while lower, sellers will attempt to re-activate the 2022 downtrend below the 1,620-1,614 base.
Summarizing, the precious metal is not out of the woods yet despite pausing its latest bearish correction. Perhaps a close above the 20-period SMA could raise buying confidence, though whether the price will re-activate its short-term uptrend above the 1,729 peak remains to be seen.
