The 14-day Relative Strength Index (RSI) continues to hold above the midpoint, providing potential support for further price increases. However, the latest downturn in the RSI suggests that the downward momentum in gold prices may extend towards the 21-day Simple Moving Average (SMA) at $2,032. Prior to that, the $2,050 level will pose a challenge to bullish commitments.
On the upside, a sustained breakthrough above the resistance level of the ascending trendline at $2,079 is crucial to continue the recovery momentum towards the psychological level of $2,100. Furthermore, gold buyers will target the all-time high of $2,144.
The RSI's current positioning suggests a cautious outlook, indicating the possibility of a pullback. Traders will closely monitor the $2,050 and $2,032 levels as potential support zones. A decisive move above $2,079, on the other hand, would signal renewed strength in the bullish trend, paving the way for a potential test of the $2,100 and $2,144 levels.
It's essential for market participants to stay vigilant and adapt their strategies based on the evolving price action. The dynamics between key support and resistance levels will play a crucial role in determining the next major move for gold prices.
On the upside, a sustained breakthrough above the resistance level of the ascending trendline at $2,079 is crucial to continue the recovery momentum towards the psychological level of $2,100. Furthermore, gold buyers will target the all-time high of $2,144.
The RSI's current positioning suggests a cautious outlook, indicating the possibility of a pullback. Traders will closely monitor the $2,050 and $2,032 levels as potential support zones. A decisive move above $2,079, on the other hand, would signal renewed strength in the bullish trend, paving the way for a potential test of the $2,100 and $2,144 levels.
It's essential for market participants to stay vigilant and adapt their strategies based on the evolving price action. The dynamics between key support and resistance levels will play a crucial role in determining the next major move for gold prices.
