- Gold posts new all-time high on Monday
- But oscillators haven’t reached overbought conditions
- The divergence suggests that the advance may extend further
Gold has been on the rise in the past couple of sessions, storming above the 2,500 psychological mark to a fresh record high on Monday. The latest rally could extend further given that the momentum indicators have not yet entered their overbought territories.
Should the recent uptick extend further, the bulls may attack 2,514, which is the 123.6% Fibonacci extension of the July 2,483 – 2,352 downleg. A decisive break above that zone could set the stage for the 138.2% Fibo of 2,533. Failing to stop there, bullion may advance to test the 161.8% Fibo of 2,564.
Alternatively, in the case of a downside reversal, immediate support could be found at the July peak of 2,483. Further declines could then cease at the 61.8% Fibo of 2,433, a region that also provided support in August. Even lower, the 38.2% Fibo of 2,402 could curb gold’s downside.
In brief, gold posted a fresh all-time high in today’s session before paring some gains. However, the advance could resume considering that the short-term oscillators have not yet shown any signs of a rally exhaustion.
Source by: XM Global