Gold faces setback after hitting 5-month peak
Gold has been in a steep uptrend since October 10, reclaiming crucial technical regions such as the 200-day simple moving average (SMA) and the 2,000 psychological mark before posting a fresh five-month peak of 2,009. However, bullion experienced a minor pullback probably due to reaching overbought conditions.
Should gold extend its recent correction, the bears could attack the July resistance of 1,987, which could now act as support. Piercing through that wall, the price could slide towards the October support of 1,954. Further declines could then cease at the June hurdle of 1,932, which overlaps with the 200-day SMA.
Alternatively, if buying interest persists and the price jumps back above the 2,000 psychological zone, immediate resistance could be met at the five-month peak of 2,009. A break above that territory could bring the April resistance of 2,032 under examination. Surpassing that region, bullion could then challenge the April-May resistance zone of 2,049.
In brief gold seems to be under relentless upside pressure, which has resulted in a series of consecutive multi-month highs. Although the short-term oscillators are hinting that the advance is overstretched, fresh geopolitical concerns may add more fuel to the latest rally.
Global Markets React to Central Bank Decisions and Policy Outlooks
Fed cuts rates but stock rebound falters as AI jitters return
Yearly Technical Outlook – EURUSD, GBPUSD, US100
GBP/USD Approaches Local High, Bolstered by BoE Stance
The dollar delivered a dovish surprise
EBC Markets Briefing | Oil up on US-Venezuela tensions; silver hit record peak
Bitcoin attempts to break the short uptrend
