Gold Fails To Test 9-Month Low, Neutral Bias

The gold price tried to test the nine-month low of 1,676 again, but it is returning slightly higher over the last 4-hour session. In the very-short-term, the metal has been in a strongly bearish tendency after the pullback from 1,747.

The momentum indicators are confirming the recent upside move, with the stochastic posting a bullish crossover in the oversold territory, within the %K and %D lines, while the RSI is heading north below the 30 level.

A jump higher could find immediate resistance at the red Tenkan-sen line currently at 1,696 ahead of the 1,700 psychological number. Even higher, the yellow metal could hit the 20-period simple moving average (SMA) at 1,710 ahead of the 1,719 resistance which stands near the 40-period SMA. More upside pressure could send the bulls towards the 100-period SMA around the 1,747 barrier.

On the flip side, steeper decreases could drive the market below the nine-month low of 1,676, hitting 1,668, achieved in May 2020, while the 1,640 support from April 2020 could halt bearish actions.

Summarizing, gold prices is recouping some losses of the bearish move in the very short-term, however, the broader outlook has been neutral since February 26.