Gold is currently trading at $2660 per ounce, achieving continuous gains supported by the upward trend that is reinforced by the price trading above the main moving averages. This rise is an indication of the continuation of purchasing power, and the MACD indicator confirms that this upward momentum may continue in the near future.
Gold Technical Analysis: Technical Outlook
On the time frame, it appears that gold has clear purchasing power supported by its trading above the 50- and 200-day moving averages. These averages indicate the continuation of the upward trend and provide strong support for the price at critical levels.
Also, the MACD indicator provides a strong signal confirming the purchasing power, as a positive intersection appears between the MACD line and the signal line, which is an indication of the continuation of the upward momentum. The presence of the MACD line above the signal line and above the zero level enhances the chances of the continuation of the upward trend for gold, making the chances of testing new levels of resistance likely.
If this momentum continues, gold could target the next resistance levels at $2,680 and $2,700 per ounce. If the price manages to break these levels, we could see further gains in the short to medium term.
How does the MACD indicator affect the future?
The MACD indicator plays a vital role in determining momentum and its continuation. Currently, the indicator is showing a positive crossover, indicating the continuation of the uptrend. If this positive crossover continues and the MACD line continues to rise above the zero level, it indicates the strength of the buying momentum and its continuation in the long term. However, any reversal in the trend or a negative crossover should be monitored, as it could indicate the beginning of a weakness or a potential correction in gold prices.
Trading strategies based on Buy/Sell levels
| XAUUSD | In case of buying | in case of selling |
| Entry point | 2666 | 2652 |
| Target Point 1 (TP1) | First resistance: 2676 | First support: 2642 |
| Target Point 2 (TP2) | Second resistance: 2686 | Second support: 2632 |
| Stop Loss (SL) | 2652 | 2666 |
Gold prices are showing a clear technical superiority as the uptrend continues, supported by the price trading above the moving averages and positive signals from the MACD indicator. The bullish momentum is likely to continue if there are no negative signals from the technical indicators. Traders following gold should closely monitor the MACD movements to identify any potential changes in momentum and market direction.
