Gold Hovers Within SMAs In Horizontal Trajectory

Key levels:
Resistance - 1800, 1834, 1855
Support - 1775, 1760, 1676

Gold is struggling to remain above the 1800 handle and has been still hovering within a consolidation area of 1723-1834 since June 16. The simple moving averages (SMAs) are generally flat and converging, implying a more neutral price behavior.

Technically, the RSI is flattening around the neutral threshold of 50, while the stochastic is heading south towards the oversold region.

If the price closes above the 200-day SMA and the 1800 level, nearby upside resistance could come from 1814. By breaching this level, buyers may attempt to challenge the channel’s upper boundary at 1834, just ahead of the 1855 barrier. By overcoming this reinforced border, the price could then hit the 1918 barrier.

On the downside, sellers may find immediate support between the 20- and 40-day simple moving averages (SMAs) around 1775 before dropping below the 1760 support level. The support level of 1676 may come into focus if the price falls below this strengthened buffer zone before the bears make an attempt to test the support level of 1723 again.

To sum up, the short-term outlook for gold remains neutral and within a broad range of 1723-1834. Only a jump above 1834 may shift the outlook to bullish or a decline beneath 1723 may open the door for more decreases.