- Gold meets familiar support area near 200-SMA
- Technical signals reflect persisting caution
- A close above 2,394 could boost positive momentum
Gold has been squeezed between its 200-period simple moving average (SMA) at 2,385 and the broken support trendline from February 2024 at 2,393, which switched to resistance, over the past couple of hours. Recall that a similar situation occurred on July 25-26 before the precious metal ascended to 2,474.
Questions, however, are rising about whether the bulls will repeat July’s pivot. Even though the stochastic oscillator is looking for a rebound near its 20 oversold level, the RSI is comfortably above its 30 oversold level, while the MACD continues to decelerate within the negative area and below its red signal line.
In any case, a close above 2,393 could drive the price towards its 50-period SMA at 2,410, where the 38.2% Fibonacci retracement of the June-July upleg is located. Additional gains from there could face resistance somewhere between the 23.6% Fibonacci mark of 2,438 and the 2,453 barrier. If the bullish phase continues, the price might attempt to pierce through the 2,470 bar and even print a new record high above the tough resistance line that connects the 2024 highs currently seen near 2,495.
In the negative scenario, if the price dives below its 200-period SMA, the door will open again for the protective region of 2,355-2,366. Failure to rotate there could press the price aggressively to 2,320.
Summing up, gold stabilized near its 200-period SMA on hopes to reiterate July’s solid bullish cycle. A clear step above 2,393 could generate fresh bullish actions but the technical picture cannot guarantee a meaningful rebound at the moment.
Source by: XM Global