- Gold stands beneath 20-period SMA
- MACD and RSI lose positive momentum
Gold prices have declined from the all-time high of 2,589.66 over the last couple of days, meeting the 2,560 support level and being capped by the 20-period simple moving average (SMA).
According to technical oscillators, the MACD is diving beneath its trigger line in the positive territory, while the RSI is falling near the neutral threshold of 50.
If there is a drop below the 2,560 support level, then the market may retest the 50-period SMA at 2,539 ahead of the 2,528 barricade, which overlaps with the medium-term uptrend line. A slide beneath these obstacles could open the way for rechallenging the 2,500 round number.
Alternatively, a rise above the 20-day SMA could send the bulls until the previous all-time peak of 2,589.66, before resting near the psychological number of 2,600.
To summarize, the precious metal is in a downside correction in the near term, while an advance above the previous peak would endorse a strong bullish structure.
Source by: XM Global