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- Gold tries to overcome the short-term downtrend line
- Remains in trading range
- RSI points up; MACD holds above the zero level
Gold prices are battling with the short-term downtrend line around 3,334 to extend its positive momentum toward the upper boundary of the consolidation area of 3,167-3,440. The price has been in a sideways channel since April 11 with the technical oscillators suggesting a neutral-to-bullish bias. The RSI is ticking slightly higher near the 50 region, while the MACD is standing beneath its trigger line above the zero area.
If the market successfully overcomes the 3,365 barrier, then the door would open for the 3,440 restrictive region ahead of the all-time high of 3,500. Even higher, the 423.6% Fibonacci extension level of the down leg from October 30 until November 14 at 3,600 may be an attractive level for the bulls ahead of the 161.8% Fibonacci extension level of the latest downward wave from 3,500 to 3,120 at 3,740.
In the negative scenario, a move beneath the 3,277 support may unlock another fight with 3,167 before testing the 3,120 support level and the medium-term ascending trend line. Breaking these levels, the bears may take the market until the 2,950 barricade and the 2,880 zone following a crash with the 200-day SMA and the long-term uptrend line near 2,830.
To conclude, the yellow metal is still standing in the trading range but the latest tests of the short-term falling trend line show signs of bullish attempts for more increases.