Gold prices update annual highs
2023.01.30 09:37
Gold prices update annual highs
Since November, gold has experienced a massive rebound, erasing a significant portion of its decline in 2022. In addition, the price soared to a new nine-month high last week, but its advance appears to be losing steam, prompting it to quickly reverse its most recent gains.
This negative momentum loss is reflected in the momentum indicators. In particular, the stochastic oscillator is sloping downwards after posting a bearish cross in the 80-overbought zone, while the MACD histogram is softening below its red signal line in the positive region.
The recent support of 1,916 could halt initial declines if selling pressures continue to rise. Before the 1,866 barrier is tested, bullion could descend to test 1,896 in the event that that floor collapses. If you don’t stop there, the 1,825 area might provide additional risk mitigation.
On the other hand, in the event that buyers regain control, the price may encounter immediate resistance at the recent rejection level of 1,949, which is also the nine-month high.
The bulls may attempt to break through this barrier and reach the crucial psychological mark of 2,000. The 2022 high of 2,070 could be triggered by a break above that zone.
Overall, gold seems to be losing momentum on the upside, but it is still in a bullish setup for the medium term. If the ascending trendline rejects moves downward, the commodity will likely enter a consolidation phase.
