Gold’s Bearish Bias Calmed by Support Boundary

Gold is tiptoeing across the flattened red Tenkan-sen line at 1,864 after the more than two-week decline from the 2,000 price vicinity bounced off a support zone that stretches back to mid-February. The descending slopes of the simple moving averages (SMAs) are endorsing the recent downward trajectory in the commodity.

Currently, the Ichimoku lines are indicating a pause in the downward driving forces, while the short-term oscillators are exhibiting weak negative momentum. The MACD, in the bearish region, is holding above its red trigger line, reflecting that the recent fading in negative impetus is lingering. The RSI has regained a minor dip but is showing that negative momentum remains weak in bearish territory. Meanwhile, the stochastic oscillator is promoting downward price action in the yellow metal.

If sellers steer the price back below the red Tenkan-sen line at 1,864, downside constraints could commence at the nearby 1,842-1,851 support barrier. However, diving past this border may reinforce negative tendencies in the commodity, with sellers subsequently aiming for the 1,820 mark. Overlooking the latter obstacle, the precious metal may then snowball towards the 1,800 handle and the 1,786-1,792 support band slightly beneath.

Alternatively, if buyers re-emerge, congested upside friction may emanate from the 1,878 high, the blue Kijun-sen line at 1,885 and the descending 50-period SMA at 1,890. Should the price conquer these obstacles and lift beyond the 1,900 barrier and the Ichimoku cloud, the bulls may then challenge the key 1,915-1,921 resistance border. If buying interest endures and the price oversteps this resistance and the approaching longer-term 100- and 200-period SMAs too, the 1,936 inside swing low may then try to hinder advances from reaching the 1,956-1,963 boundary.

Summarizing, gold is sustaining a bearish bias beneath the SMAs and the 1,915-1,921 resistance band. A break below the 1,842-1,851 support may intensify the bearish bearing, while a climb north of the 1,900 handle is necessary to heighten positive beliefs.