- Gold remains trapped within a tight range around the $ 1,900 level.
- The three-week uptrend line limits the immediate decline.
- The 200-period SMA and monthly resistance line will test the bulls.
Gold prices remain trapped within a tight range around the $ 1,900 level at the start of the European session on Tuesday. In doing so, the yellow metal respects the pullback from a short-term support line and at the same time remains below the short-term resistances, that is, the 200-period SMA on the 4-hour chart and a downtrend line since September 16.
Since the MACD does not suggest a clear direction, investors will prefer to wait for a clear break of $ 1,918, where the resistance line is, or a break to the downside of the support line near $ 1,894.
A break above the mentioned $ 1,918 level could target the monthly high of $ 1,933 before testing the mid-September peak around $ 1,973.
On the other hand, the dominance of bears below $ 1,894 will have multiple supports around $ 1,890 and $ 1,880 / 75 before targeting the September 28 low of $ 1,848.82.
Gold 4 hour chart
Credits: Forex Street
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