Technical Analysis – Gold attempts to erase latest slump
Gold falls to its lowest level in a month
But recovers some ground, eyeing 50-day SMA
Oscillators improve but remain negatively tilted
Gold has been experiencing a pullback from its all-time high of 2,450, breaking below the 50-day simple moving average (SMA). Although the price posted a fresh one-month low on June 7, it has been in a recovery mode since then as the bulls appear to have locked their gaze on the short-term SMA.
If the price violates the 50-day SMA, immediate resistance could be found at the June high of 2,388. Surpassing that zone, gold could ascend towards the April peak of 2,430. Failing to halt there, the price may revisit its record high of 2,450.
On the flipside, bearish actions could come to a halt at the 2,286-2,777 range, defined by the May and June lows. Sliding beneath that floor, the price could challenge the March resistance of 2,223, which could serve as support in the future. Further declines could then stall at 2,145, a region that has acted both as support and resistance in recent months.
In brief, gold has been slowly regaining ground in the near term, attempting to reclaim the 50-day SMA. However, a failure to surpass that crucial barrier could easily trigger a fresh round of weakness.
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