Gold switched to green on Thursday, speeding up within the 1,900 area, which barely could touch in the previous day.
The precious metal is currently close to breaching the bar around 1,930, though the bulls seem to be running out of fuel as the RSI is approaching a key resistance zone slightly below its 70 overbought level, making a pullback in the price possible. The Stochastics are already above 80, further backing this view.
Nevertheless, should the market find new buyers to break that ceiling, the rally may next stall around 1,955 and then near 1,970. Note that the 20-period simple moving average (SMA) has recently registered a double bullish cross with the 50- and 200-day SMAs, sending positive signals about the market structure.
Otherwise, a rejection at 1,930 could bring again the supportive 20-period SMA and the 1,900 mark under the spotlight. Crossing underneath, the door would open for the 1,880 barrier, a break of which could reach another key obstacle around 1,866.
In brief, gold is looking bullish but overbought in the very short term. A decisive close above 1,930 could raise buying appetite, while a step below 1,900 may increase selling interest.
Written by Admin
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