Technical Analysis – Gold edges higher, descending trendline in focus
The momentum indicators are reflecting a positive near-term bias. Specifically, the stochastic oscillator is sloping upwards within the 80-overbought zone, while the RSI has jumped above its 50-neutral threshold.
Should buying interest intensify further, the price may encounter initial resistance at the 1,787 barrier. Any further advances may then stall at the 200-day simple moving average, currently at 1,845. Slicing through this region, the June peak of 1,880 could be the next obstacle for the bulls overcome.
On the flipside, should the rebound falter, immediate support might be provided by the recent low of 1,710. A violation of this zone could shift the attention to the one-year low of 1,681. Failing to halt there, the price could descend to challenge 1,640, which acted both as support and resistance in April 2020.
Overall, even though the market is trying to push for some recovery in the past few daily sessions, gold maintains both its bearish short- and long-term outlooks. For the former to alter, the price needs to decisively cross above the 1,880 ceiling.
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