Gold eases but remains above 2,000

Gold is currently under pressure but is still above the 2,000 psychological mark and the short-term simple moving averages (SMAs) in the 4-hour chart. The short-term technical oscillators are showing some bearish signs and point to more weakness in the market. The RSI is pointing down above the 50 level and the stochastic is looking overstretched near the 80 level. However, the MACD is still above its trigger and zero lines, confirming the broader bullish outlook.

The next target to the downside is the 20-period SMA at 2,003 ahead of the 50-period SMA at 1,995. At this stage the market would see a retest of the 1,980 support level, which stands near the medium-term uptrend line.

Upside moves are likely to find resistance at a 13-month high of 2,032. There is an important resistance zone around 2,070, taken from the peak in March 2022.

In a nutshell, in the short term, the bullish phase remains in play especially if gold prices continue to trade above the ascending trend line and near the previous peak.

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).