Gold rose over the weekend to open the trading session at $1,311.79 on Monday, higher than Friday’s close at $1,307.41. This short bullish up trend continued during the Asian trading hours to peak at $1,320.40 before slumping to a low of $1297.20, barley under the $1,300 mark.
On the short term analysis of the daily chart, the current gold price is below the fast 5-Days EMA at $1,310 and the slower 35-Days EMA $1,309. Gold current movement indicates a downtrend unless gold bulls pick up momentum to break through the $1,327 resistance, the first stop upwards. The MACD indicator is positive at 5.073, which is a fair sign for building this bullish momentum. The 14-day RSI indicator is giving a neutral sign, 47.78 mark on the daily chart, which doesn’t support neither the bulls nor the bears.
By summing up technical indicators’ signals, a bearish gold market is more likely. The price is under moving averages, simple and exponential, which are expected to provide resistance for minor upwards movements. However, the $1,300 mark, a key support point, might prove difficult to breach due to the physical demand.
All these factors weight on the bull’s shoulders and giving gold bears a technical and a psychological advantage. On the other hand, the bulls might benefit from the limited truce of the FOMC tapering bond purchase announcements and gain ground. Gold price might remain in consolidation between $1,300 and $1,340 for some time.