The gold price has seen a significant increase, with the price per ounce rising by approximately 3.3% in just over three full trading sessions. Today, the gold price is near $2,460, despite opening at around $2,385 on the 8th of August. This surge has brought the price to within 1.6% of the psychological level of $2,500. This bullish sentiment is being largely driven by rising geopolitical tensions across various regions.
A closer look at the XAU/USD chart reveals that the gold price is currently forming a trading channel, as indicated by the blue lines. The current rise has pushed the RSI indicator into overbought territory and the price has reached the upper boundary of the channel. Past instances, marked by yellow circles, have shown a consistent pullback to the channel’s median, but it is important to note that history does not always repeat itself in the market. The $2,436 level may act as support for the current price, after showing resistance signs last Friday before being breached by bulls.
Upcoming Economic News
Market participants are positioning themselves ahead of key US economic news. The Consumer Price Index (CPI) report is set to be released tomorrow, followed by Core Retail Sales data and unemployment news on Thursday. Analysts, such as Deven Gaglani from Axis Securities, believe that a break above the $2,483 high and a weekly close above this level could signal further bullish momentum, potentially pushing prices to $2,550. There is also speculation that news of easing inflation could contribute to a rise in gold prices.
The gold market is currently experiencing a period of heightened volatility and bullish sentiment. While technical analysis indicates a potential pullback in the near future, the possibility of setting a new all-time high remains on the horizon. As geopolitical tensions continue to escalate and key economic data releases loom, market participants will be closely monitoring the gold market for potential trading opportunities. It is essential for traders to stay informed and exercise caution when navigating the dynamic landscape of the gold market.
Leave a Reply