Gold price started the trading session on Tuesday with a slight decline during the Asian trading hours, testing the $1,330 level. The yellow metal continued to slide during the early European trading hours.
Gold barely touched the $1,330.30 resistance twice during the Asian trading hours, and breaching it during the early European trading hours to reach $1,326.33 low. The bears retaliated on yesterday’s bull gains.
On the short term analysis of the daily chart, the current gold price is above the fast 5-day EMA $1,322.50 (Dark Red) and the slower 35-day EMA (Blue) at $1,311.62. 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 trend indicators. The MACD (20,60,18) indicator is still negative at -13.387 mark. However, the downtrend is still losing momentum slowly to the bulls, as the indicator shows. The 14-day RSI indicator is currently at 56.3202, 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, gold might be bearish for the day, unless surprising heavy buying takes place. The price is above both short-term EMAs, where they will provide resistance if the prices slide. Moreover, the $1,325 resistance is providing additional resistance, which is being tested today. As said before, physical demand could surge if the price ran below the $1,300 mark, another key support level. Financial advisors expect gold to keep trading between $1,300 and $1,350 until September.