Gold price started the first trading session this week on Monday with a fair rise during the Asian trading hours, then settling around $1,325 level by the start of the U.S. trading hours.
Gold touched the $1,333.50 high twice, and breaching it once to reach $1,333.55 before sliding below the $1,330 mark. The bulls gained some ground closing the price for several hours above the $1,325 resistance.
On the short term analysis of the daily chart, the current gold price is above the fast 5-day EMA $1,316.98 (Dark Red) and the slower 35-day EMA (Blue) at $1,310.18. The Moving Average indicator movement show gold prices are almost flat since July, and the bulls are trying to take the prices higher this week, as the current price is higher than both short-term indicators. The MACD (20,60,18) indicator is still negative at -15.461 mark. However, the downtrend is losing momentum slowly to the bulls, as the indicator shows. The 14-day RSI indicator is currently at 55.3978, which is a fair buy signal on the daily chart. The RSI resistance, the previous peak, is at 63.9666.
By summing up technical indicators’ signals, a bullish gold market for the next days is more likely. The price is above both short-term EMAs, where they will provide resistance if the prices slide. Moreover, the $1,325 resistance might provide additional resistance. As said before, physical demand could surge if the price ran below the $1,300 mark, a key support level.