Gold has been outperforming today following the rebound from the 1321 support level that hit last Thursday. Despite the latest pullback though, the precious metal has not posted a lower bottom below 1321, which makes one hesitant to trust further declines for now.
Looking at momentum oscillators in the 4-hour chart, they suggest further upside movement may be on the cards in the short-term. The RSI indicator is approaching the 50 level and is also pointing upwards. The MACD oscillator jumped above its red trigger line and is rising while in negative territory.
In case of further gains, immediate resistance may be found on the 20-simple moving average (SMA) around 1334. If price successfully surpasses the aforementioned obstacle, this would open the door towards the 1340 resistance barrier.
On the flipside, if the bears retake control, the price may stall initially near the latest one-week low of 1321. A potential downside violation of this level would raise the likelihood of more declines until the 1312.50 support.
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