Gold renews all-time high within bullish channel, $2,750 eyed
Gold prices soared to a record $2,710, marking four days of gains as investors flock to safety. Despite a stronger US dollar, gold has remained within a rising trend channel for the past three months.
Caution Ahead
While the bulls celebrate breaking through a three-week-old resistance level, the momentum indicators suggest a potential pullback. With the RSI nearing overbought territory, we might see a brief dip before another surge in prices.
Key technical levels to watch
Gold’s next challenges lie at the 50% and 61.8% Fibonacci Extension (FE) of the bullion’s September-October moves, respectively near $2,711 and $2,736, especially amid nearly overbought RSI conditions. In a case where the precious metal remains firmer past the $2,736 hurdle, the aforementioned bullish channel’s top line surrounding $2,750 will be a tough nut to crack for the buyers. A breakthrough there could spark a rally towards the psychological $3,000 mark, with potential resistance around $2,800 and $2,900.
On the contrary, Gold’s price has solid support at the $2,700 level and the 38.2% Fibonacci Extension around $2,686. If it falls below these, watch for a key support zone near $2,665, where the late September resistance and the 10-day EMA converge. Should XAUUSD bears keep the reins past $2,665, the channel’s bottom line of near $2,630 will be the last defense of the buyers.
Buyers are likely to stay in control despite a potential pullback
While a short-term pullback in gold prices appears overdue, the overall bullish trend is expected to hold strong due to global economic and geopolitical uncertainties.
Caution Ahead
While the bulls celebrate breaking through a three-week-old resistance level, the momentum indicators suggest a potential pullback. With the RSI nearing overbought territory, we might see a brief dip before another surge in prices.
Key technical levels to watch
Gold’s next challenges lie at the 50% and 61.8% Fibonacci Extension (FE) of the bullion’s September-October moves, respectively near $2,711 and $2,736, especially amid nearly overbought RSI conditions. In a case where the precious metal remains firmer past the $2,736 hurdle, the aforementioned bullish channel’s top line surrounding $2,750 will be a tough nut to crack for the buyers. A breakthrough there could spark a rally towards the psychological $3,000 mark, with potential resistance around $2,800 and $2,900.
On the contrary, Gold’s price has solid support at the $2,700 level and the 38.2% Fibonacci Extension around $2,686. If it falls below these, watch for a key support zone near $2,665, where the late September resistance and the 10-day EMA converge. Should XAUUSD bears keep the reins past $2,665, the channel’s bottom line of near $2,630 will be the last defense of the buyers.
Buyers are likely to stay in control despite a potential pullback
While a short-term pullback in gold prices appears overdue, the overall bullish trend is expected to hold strong due to global economic and geopolitical uncertainties.
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