- Gold bounces off $2,860
- Remains below short-term ascending trend line
- RSI flattens, MACD eases
Gold prices have recovered some of their losses from the previous days, touching the short-term 20-day simple moving average (SMA) slightly below the $2,900 round number and the penetrated steep uptrend line.
The price rebounded off the 2,860 support level, but the technical oscillators are still indicating negative movements. The RSI is moving horizontally above the neutral threshold of 50, while the MACD is heading south below its trigger line.
If the commodity overcomes the 2,900 key level, then it could challenge the restrictive region of the 161.8% Fibonacci extension level of the down leg from 2,790 to 2,535 at 2,945 and the all-time high of 2,956. More advances could lead the bulls to the 3,000 level.
On the other hand, a drop below the latest low of 2,830 could send traders until the 2,790 support, which stands near the 50-day SMA before tumbling to the 2,720-2,730 zone. More downside pressure could help the bears break the long-term uptrend line, meeting 2,655.
To conclude, the yellow metal remains in bullish territory, despite the drop below the near-term uptrend line and the weakening movement in the momentum oscillators.