XAU/USD: Spot Gold at Record Highs; Overbought?
Versus the US dollar, spot gold climbed to a fresh all-time high of US$2,817 last week, though, given current chart studies, it could be due a retracement.
The monthly timeframe is knocking on the door of resistance between US$2,923 and US$2,730 (formed by a 1.272% Fibonacci projection ratio and a 100% projection ratio, respectively). Additionally, the RSI recently touched gloves with resistance located in overbought territory at 87.31-82.20. While the uptrend suggests investors will continue to bid gold, a decision point from US$2,428-US$2.290 may be worth pencilling in the watchlist if a long-term correction materialises.
What is interesting from a technical perspective on the daily timeframe is that Friday wrapped up in the shape of a shooting star bearish candle after refreshing record highs. Nevertheless, this week will be about support from US$2,790.
Countertrend sellers will likely opt for caution at current levels, given support at US$2,790. If price manages to close south of the aforementioned line, this may prompt selling towards demand at US$2,736-US$2,763, closely followed by another layer of support from US$2,715. Conversely, were buyers to defend US$2,790, tripping stops above the shooting star’s upper shadow, refreshing all-time highs, and driving price higher into monthly resistance mentioned above at US$2,923-US$2,730 could all be on the table.
The monthly timeframe is knocking on the door of resistance between US$2,923 and US$2,730 (formed by a 1.272% Fibonacci projection ratio and a 100% projection ratio, respectively). Additionally, the RSI recently touched gloves with resistance located in overbought territory at 87.31-82.20. While the uptrend suggests investors will continue to bid gold, a decision point from US$2,428-US$2.290 may be worth pencilling in the watchlist if a long-term correction materialises.
What is interesting from a technical perspective on the daily timeframe is that Friday wrapped up in the shape of a shooting star bearish candle after refreshing record highs. Nevertheless, this week will be about support from US$2,790.
Countertrend sellers will likely opt for caution at current levels, given support at US$2,790. If price manages to close south of the aforementioned line, this may prompt selling towards demand at US$2,736-US$2,763, closely followed by another layer of support from US$2,715. Conversely, were buyers to defend US$2,790, tripping stops above the shooting star’s upper shadow, refreshing all-time highs, and driving price higher into monthly resistance mentioned above at US$2,923-US$2,730 could all be on the table.
Penafian
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.