Gold Knocks on New Highs: What Does It Mean for Investors?

4 days agoIn the recent trading session, gold prices recorded a strong growth, breaking through several important resistance levels, and are now approaching the new red resistance zone on the chart. With this increase, gold prices have the potential to challenge higher levels in the near future, supported by several technical and macro factors.

The 34 EMA and 89 EMA are both showing bullish trends as they maintain an upward slope. The position of gold prices above both these EMAs is a sign of a sustainable uptrend that could continue.

The current red area on the chart marks a major resistance level that gold prices need to overcome to continue the uptrend. A successful breakthrough of this level could lead to a new bullish phase, while a failure could trigger a price correction.

If gold can break above the current resistance zone, we can expect a further strong rally towards higher Fibonacci levels. However, if the price fails to maintain support from the 34 EMA and fails to break above the current resistance zone, a correction lower is possible, pulling the price towards the predetermined support levels.