Gold continues to show steady consolidation due to support from its 50-day MA. This suggests a potential move towards unprecedented price levels despite the current sideways fluctuation. Market analysts anticipate a bullish trend despite the ongoing sideways momentum.
Currently, Gold prices are finding support from the 50-day MA at 2,342. The day’s low support price bar is set at 2,349. Meanwhile, the 20-day MA resistance keeps a lid on any attempts at an upward push. Investors maintain a wait-and-see approach, and traders observe the tight range between the resistance and support levels.
As the gold market continues its trajectory, the next key resistance level is at the 2,360 mark. Any divergence could indicate a near-term trend reversal that could sustain a bullish run. However, price action will largely depend on financial data releases and key economic events in the upcoming week.
If gold prices break and hold above the overhead resistance at the 2,360 level, an extended rally could be possible.
Potential gold price increase: analysis
Conversely, a break below the day’s low support could indicate a bearish sentiment, potentially dragging prices toward the 2,335 level. Investors are advised to monitor market conditions and adjust promptly to changes.
Last week, gold reached a peak not seen in seven weeks. This suggests buyers are gaining control and could lead to an upward trend. The Relative Strength Index (RSI) shows a possible turnaround in favor of gold, pending the market’s response to the current resistance level.
This week, gold is expected to maintain its position within the previous week’s trading range (2,318 to 2,393). Investors should watch for signs of further stimulus measures or geopolitical tensions, which could strengthen gold as a safe-haven asset. The breaching of its current resistance level could signal a new bullish phase, contingent on market sentiment and economic indicators.
The peak of the past month at 2,388 acted as resistance for June. However, a promising breakout on the upside the previous week pushed prices up to 2,393. Market trends anticipate a further rise, signifying a promising start for July.
The analysis was procured by Bruce, a financial market expert with over two decades of experience. His roles at Relentless 13 Capital and Chronos Futures have given him a profound understanding of the financial market.
