Gold moves down from short-term SMAs

Gold prices are moving lower after several failed attempts to jump above the short-term simple moving averages (SMAs). The price remains below the long-term descending trend line and the technical oscillators currently confirm the bearish structure. The MACD oscillator is moving sideways below the zero level, while the RSI is flattening in the negative region.

To the downside, immediate support could come from the two-and-half-year low of 1,615, which was tested two times over the last month. Moving lower, the troughs of March 2020 at 1,570 could be revisited ahead of the 1,450 bottom.

Otherwise, if buyers push above the moving averages, initial resistance could come from the 1,687 barrier, which overlaps with the downtrend line. Climbing higher, the 1,730 resistance could interrupt the test of a key region from the 200-day SMA and the 1,808 hurdle.

Summarizing, the very short-term bias has turned neutral but if the price shifts above the 1,687 barrier, the picture may turn positive.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).