Gold Nears Six-Month Peak Amid Fed's Moderate Policy Outlook
Gold prices continue their positive trend for the fourth consecutive day, nearing a multi-month peak. The belief that the Federal Reserve has completed interest rate hikes and is initiating policy easing in 2024 remains supportive. From a technical perspective, the overnight breakthrough above the horizontal resistance at $2,008-$2,010 is considered a new catalyst for bullish traders. Furthermore, oscillators on the daily chart comfortably stay in the positive zone, indicating that there is still room before entering overbought conditions. This, in turn, suggests that the path of least resistance for gold prices is to the upside.
Therefore, a potential next move targeting the examination of the next relevant resistance around $2,035 seems to be a plausible scenario. This momentum could further extend towards the intermediate hurdle at $2,048 on the way to the year-to-date peak, around the $2,078 level touched in May.
On the flip side, the current breach of the resistance level at $2,010-$2,008 appears to immediately shield against downward pressure before reaching the $2,000 mark. Further selling pressure leading to a descent below the $1,988-$1,987 zone could pave the way for deeper losses. Gold prices might then swiftly descend towards the $1,978 zone on the way to the region of $1,967-$1,966 and the support area at $1,955. A convincing break below this level would expose the Simple Moving Average (SMA) 200-day, currently closing near the $1,942 area, and converging at $1,935-$1,934, encompassing the SMA 100 and 50 days.
Therefore, a potential next move targeting the examination of the next relevant resistance around $2,035 seems to be a plausible scenario. This momentum could further extend towards the intermediate hurdle at $2,048 on the way to the year-to-date peak, around the $2,078 level touched in May.
On the flip side, the current breach of the resistance level at $2,010-$2,008 appears to immediately shield against downward pressure before reaching the $2,000 mark. Further selling pressure leading to a descent below the $1,988-$1,987 zone could pave the way for deeper losses. Gold prices might then swiftly descend towards the $1,978 zone on the way to the region of $1,967-$1,966 and the support area at $1,955. A convincing break below this level would expose the Simple Moving Average (SMA) 200-day, currently closing near the $1,942 area, and converging at $1,935-$1,934, encompassing the SMA 100 and 50 days.
Penafian
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