The precious metal found strong resistance at $1,879 on June 13th, it then lost more than 3.4% in the following two trading sessions and recovered 2.7% two sessions after. Gold's swings indicate a potential consolidation period in the short term.
The price is currently trading below the short and long-term moving averages, which are close to crossing, suggesting a downtrend. Given the high volatility of the pair in current sessions, we estimate that there could be a breakout soon.
The Bollinger bands are somewhat narrow, they have remained level in the last 12 trading sessions, and the price has not been able to break the support at $1,806 nor the resistance at $ $1,879 since May 16th. We expect the trend to continue in the direction of the potential breakout in the short to medium term.
The relative strength index is very neutral at 46%, which will give Gold the opportunity to move in either direction with potentially no constraints in the near future.
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