Gold price has been trading in a declining trading channel
Gold prices remained within a tight trading range between $2,025 - $2,035 amid concerns of higher-for-longer U.S. rates, driven by signs of sticky U.S. inflation and resilience in the job market which resulted in the recent strengthening of the US dollar. Investors are closely watching for U.S. macroeconomic data to gain insights into the Federal Reserve's future policy decisions and guide their bets on gold prices and other commodities. Safe haven demand for gold, limited losses fueled by signs of a recession in Japan and the UK, as well as geopolitical disruptions in the Middle East.
From the technical point of view, gold price has been trading in a declining trading channel for the last couple of months and is currently testing the resistance area of the 50-day moving average which is still trading above the 100-day moving average validating the overall bullish trend regardless of the recent declining momentum.
The Stochastic oscillator is recording extreme overbought levels which could be hinting that a correction to the downside might be visible in the coming sessions. If this scenario is confirmed then the first area of possible support might be found around the $2,020 which consists of the 38.2% of the daily Fibonacci retracement level, the 100-day moving average, and the psychological support of the round number.
From the technical point of view, gold price has been trading in a declining trading channel for the last couple of months and is currently testing the resistance area of the 50-day moving average which is still trading above the 100-day moving average validating the overall bullish trend regardless of the recent declining momentum.
The Stochastic oscillator is recording extreme overbought levels which could be hinting that a correction to the downside might be visible in the coming sessions. If this scenario is confirmed then the first area of possible support might be found around the $2,020 which consists of the 38.2% of the daily Fibonacci retracement level, the 100-day moving average, and the psychological support of the round number.