Gold’s impressive run saw its price stabilize near the record high of 2,144. The recent surge, fueled by bullish momentum, drove the price as high as 2,141 on Tuesday. However, with the current consolidation phase ahead of Powell’s testimony and the US jobs data, the bulls might take a temporary break but remain in play as long as the price stays above 2,100.
Looking at the four-hour chart, a small doji candlestick around 2,125 suggests that gold is gearing up for another upturn. However, the technical indicators paint a less optimistic picture at the moment. The MACD shows signs of entering a negative phase, while the stochastic oscillator continues its downward trend. Moreover, the RSI remains within the overbought zone, hinting that the recent bullish momentum could soon lose steam.
Possible Price Movements and Targets
If the bulls manage to maintain control, the price could attempt to break the 2,144 ceiling, with a potential target of the 161.8% Fibonacci extension at 2,152. The 2,175 region, marked by a resistance line connecting March highs, could be the next hurdle. A breakthrough might lead to a test near the psychological mark of 2,200. However, a reversal below 2,125 could see the price stabilizing around the support zone of 2,110 and the key 20-period EMA at 2,102. Further downside movement might find support near December’s resistance at 2,087 and the key level of 2,079.
Gold’s rocket rally seems poised to enter a consolidation phase near the all-time high of 2,144 in the upcoming sessions. The presence of indecisive candlesticks following the recent peak hints at a potential shift in momentum. Traders and investors should closely monitor key levels and technical indicators to gauge the next direction of gold prices.
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