Gold Slides From Record Peak Above 2,800 – What’s Next?
2025.02.03 04:24
- Gold reaches fresh high at 2,817
- Technical oscillators indicate downside correction
prices retreated after the new high that was posted in Friday’s session when they surpassed the 2,800 round number but failed to hold above it.
The technical oscillators suggest an overstretched market with a potential downside correction. The RSI is falling from the 70 level, testing the more than one-month uptrend line, while the MACD is losing some of its positive momentum above its trigger and zero lines.
If the commodity drops below the 2,790 restrictive region, then it may touch the next support area at 2,720-2,730, meeting the short-term ascending line and the 20-day simple moving average (SMA). A move lower could help traders reach the 50-day SMA at 2,675 ahead of the long-term rising trend line near the 2,655 barricade.
On the flip side, the yellow metal may run again towards uncharted levels, such as the 2,900 and 3,000 psychological marks.
All in all, gold prices have been in bullish territory, but the key level of 2,790 could act as a point for more upside pressures or as a sign of a bearish retracement.
