Gold faces setback after hitting 5-month peak
2023.10.30 07:14
- Gold surges to a fresh 5-month high amid increasing geopolitical tensions
- Pulls back below the 2,000 psychological mark in the following session
- Momentum indicators ease from overbought levels
Gold has been in a steep uptrend since October 10, reclaiming crucial technical regions such as the 200-day simple moving average (SMA) and the 2,000 psychological mark before posting a fresh five-month peak of 2,009. However, bullion experienced a minor pullback probably due to reaching overbought conditions.
Should gold extend its recent correction, the bears could attack the July resistance of 1,987, which could now act as support. Piercing through that wall, the price could slide towards the October support of 1,954. Further declines could then cease at the June hurdle of 1,932, which overlaps with the 200-day SMA.
Alternatively, if buying interest persists and the price jumps back above the 2,000 psychological zone, immediate resistance could be met at the five-month peak of 2,009. A break above that territory could bring the April resistance of 2,032 under examination. Surpassing that region, bullion could then challenge the April-May resistance zone of 2,049.
In brief gold seems to be under relentless upside pressure, which has resulted in a series of consecutive multi-month highs. Although the short-term oscillators are hinting that the advance is overstretched, fresh geopolitical concerns may add more fuel to the latest rally.
