Gold is still holding within a short-term trading range over the last two months with strong resistance boundary the 1212.50 level and support boundary the 1180.60 level. Notice that currently, the price is moving below the 20- and 40-simple moving averages (SMA) in the 4-hour chart. The bearish pressure in the channel has been confirmed by the technical indicators. The RSI indicator dropped below the 50 level, while the MACD oscillator is losing momentum in the positive territory.
If the precious metal dips below the 1193.80 level again, then the focus would shift towards the 1185.00 support. If this level is breached too, it would increase negative view and may bring the price until the 1180.60 level, identified by the September 28 low.
In case of an upside movement and a climb above the SMA, there is scope to retest the 1208.30 resistance level and clearing this key level could see additional gains towards the upper boundary of 1212.50. If the price successfully penetrates the trading range, it would challenge the 1217 – 1220 resistance zone, identified by the peaks in early August.
Having a look at the short-term timeframe, gold lost its momentum over the last couple of months, while in the medium-term the price has been developing in bearish mode since the pullback on the 1365 resistance barrier.
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