- Gold moves horizontally within 2,145-2,195
- MACD and RSI lose steam
Gold prices have been moving lower over the last couple of days after the bullish spike towards the all-time high of 2,222.68 that was posted in the preceding week. The market has been developing within a narrow range of 2,145 to 2,195 since March 7 with the technical oscillators confirming a weakening bias. The MACD is holding beneath its trigger line well above the zero level, while the RSI is ticking down after the climb to 70 level.
If the market retreats further, then it may hit the lower boundary of the sideways move at 2,145 before touching the 20-day SMA at 2,131. Slipping further, the 2,088-2,100 region may halt the bearish movements.
On the other hand, a successful attempt above the 2,195 resistance could open the way for a retest of the all-time peak of 2,222.68. Immediate resistance could be found at the 161.8% Fibonacci extension level of the down leg from 2,079.19 to 1,810 at 2,245. Even higher, the price may challenge the next psychological marks such as 2,300 and 2,400.
All in all, gold is moving horizontally in short-term timeframe, but the broader outlook remains positive.
