Technical Analysis – Gold shackled in a neutral trajectory as driving forces fade



Gold has fairly flatlined around the Ichimoku clouds’ upper band, where the 50- and 100-period simple moving averages (SMAs) are also residing. Directional momentum seems to have dried up even though the SMAs are endorsing a modest upside bearing.

The Ichimoku lines are indicating the absence of directing impetus, while the short-term oscillators are not suggesting any clear price preference in the precious metal. Momentum is lacking, something also being demonstrated by the MACD and red trigger line, which are both toying with the zero threshold. The RSI is slightly underneath the 50 level and is showing weakness in directional momentum. The consolidating stochastic lines are currently not reflecting a commanding price direction.

In the positive scenario, initial upside hindrance could develop around the nearby 1,820 and 1,823 highs. Efforts to improve further may then be opposed by the 1,828-1,832 resistance ceiling. If the bulls successfully overstep this obstacle, they may meet the 1,838-1,843 resistance border before pursuing the 1,849 barrier.

Otherwise, for the price to steer lower, sellers would need to overpower the immediate support zone from the 50-period SMA at 1,813 until the cloud’s lower surface at 1,806, an area which encompasses the 100-period SMA, the recent low and the cloud. Should the bears take the lead, the next support section could evolve between the 1,802 barrier and the 200-period SMA at 1,799. Sinking further, the 1,790 obstacle may come into play before the 1,782-1,786 base draws traders’ attention.

Summarizing, gold is sustaining a neutral bias between the lower limit of 1,782-1,786 and the upper limit 1,828-1,832. A break of these boundaries could fuel a clearer price direction.

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