Gold bulls take a breather after 1-year high above 2,000

Gold struggled to jump above the immediate resistance of 1,985, keeping its footing above the short-term simple moving averages (SMAs) in the 4-hour chart.

Trend signals remain daunting as regards the market momentum. Some downside correction seems to be building as the RSI has paused its uptrend in the positive area and the stochastics are flattening in the overbought region.

Should the bulls dominate, driving the price above the 1,985 number, the spotlight will shift to the one-month high of 2,009 ahead of the 2,070 obstacle, taken from the peak in March 2022.

In the event the bears take control, the 20-period SMA at 1,964 will come first into view. A violation at this point may see another challenging battle around the 50-period SMA, which is currently near the 1,934 support. If sellers claim that zone this time, the 1,907 barrier could immediately add some downside pressure.

In brief, gold continues to send upward trend signals, the odds for an upturn seem to be growing, with the confirmation expected to come above 1,985.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).