Gold price started the trading session on Thursday higher during the Asian trading hours, successfully closing above the $1,340 level for hours. The yellow metal price declined during the early European trading hours.
Gold barely touched the $1,346.29 high overnight and the $1,344.89 high during the Asian trading hours, in an attempt to breach the $1,345 resistance. Gold recorded a low of $1,334.11 at 1100 UTC.
On the short term analysis of the daily chart, the current gold price is above the fast 5-day EMA $1,330.95 (Brown) and the slower 35-day EMA (Blue) at $1,314.35. The Moving Average indicator movement show gold prices are almost flat since July, and a weak uptrend is building, as the current price is higher than both short-term trend-following indicators. The MACD (20,60,18) indicator is still negative at -9.663 mark. However, the downtrend is still losing momentum slowly to the bulls at a faster pace, as the indicator shows. The 14-day RSI indicator is currently at 58.0665, which is a 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 consolidating for the day, unless surprising movement takes place changing the market sentiment. 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 has been tested yesterday. 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, till the U.S Federal Reserve makes its awaited announcement.