Gold is currently trading at $2689 per ounce, amid a noticeable rise that reflects the increasing demand for the precious metal as a safe haven. This rise is driven by the relative decline of the US dollar and the weakness of bond yields, in addition to economic and geopolitical concerns that enhance the attractiveness of gold as a hedge against risks.
Gold Technical Analysis: Technical Indicators Analysis
- Moving Averages:
Gold continues to trade above the main moving averages (such as the 50- and 200-day moving averages), reflecting strong buying momentum and clear support for the uptrend. These averages act as dynamic support lines that keep the price movement on its positive path.
- MACD Indicator:
The indicator shows clear bullish signals, as it moves above the zero line with a widening gap between the MACD line and the signal line. This indicates the continuation of the buying momentum and the strength of the uptrend in the short and medium term.
Key Technical Levels
- Resistance Levels:
The $2700 level represents a nearby psychological resistance, and breaking it may open the way to test the $2725 level.
In the medium term, the $2750 level is a major resistance.
- Support levels:
The $2660 level is an initial support in case of any correction.
The $2635 level is a stronger support, in line with the 50-day moving average.
Trading strategies based on Buy/Sell levels
| XAUUSD | In case of buying | in case of selling |
| Entry point | 2700 | 2681 |
| Target Point 1 (TP1) | First resistance: 2710 | First support: 2679 |
| Target Point 2 (TP2) | Second resistance: 2720 | Second support: 2669 |
| Stop Loss (SL) | 2681 | 2700 |
Gold continues to show strong buying momentum, supported by stable trading above the moving averages and positive MACD signals. With the underlying support from economic and political risks remaining, the overall trend for gold remains bullish in the near term. It is recommended to follow key technical levels and any economic developments that may affect the US dollar or the overall market sentiment.
Investors can consider buying on corrections towards the mentioned support levels, with resistance levels as profit targets. Risk management should be carefully considered with positions updated based on price action and changes in technical indicators.
