Gold prices have surged to new heights, reaching a peak of 2,450 and holding above the previous high of 2,431.48. This upward movement is accompanied by positive signals from technical indicators, indicating the possibility of further gains in the market. The MACD is showing strong positive momentum above its trigger and zero lines, while the RSI is hovering near the 70 level, maintaining its position above the ascending trend line.
Potential Targets and Support Levels
In the event of continued bullish momentum, traders may focus on the 261.8% Fibonacci extension level at 2,515 as the next target. A potential pause in the upward movement could occur around the psychological level of 2,600. However, if the intraday high holds firm, the price of gold could retreat towards the support zone of 2,400-2,431.48. The 20- and 50-day simple moving averages (SMAs) at 2,342 and 2,326 respectively may provide some support against downside pressures, with further support at 2,277, which was previously the lower boundary of a consolidation area. A breach of this level could accelerate a bearish move towards the 161.8% Fibonacci extension at 2,245.
Overall, the outlook for gold prices remains positive, with technical indicators suggesting further upside potential. Traders should monitor key levels and indicators for any signs of a reversal in the current trend. The next target at the 261.8% Fibonacci extension level of 2,515 could be in focus if bullish momentum continues, while support levels are identified at 2,400-2,431.48, 2,342, and 2,326. As always, it is important to consider both upside and downside scenarios while evaluating trading opportunities in the gold market.
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