echnically, Gold price could see a rebound toward the downward-sloping 50-Daily Moving Average (DMA) at $1,944, as the 14-day Relative Strength Index (RSI) indicator is showing some signs of recovery.
Ahead of the 50 DMA barrier, Gold buyers need to take out the previous day’s high of $1,938 on the road to recovery.
With the 14-day RSI still below the midline, Gold sellers are likely to impede the recovery mode, driving Gold price back toward the monthly low of $1,923. However, Gold price needs a daily close below the July 11 low of $1,924 to see a sustained downtrend.
The next relevant cushion is seen at around $1,910 demand area, below which floors will open up toward the $1,900 threshold.
All in all, Gold price is likely to range between $1,920 and $1,950 in the lead-up to the key US CPI event risk due Thursday.