Commodities Watchlist: How High Can Gold Prices Go?

Heads up, gold bulls!

The shiny metal has been on a tear for the past few days, but it surely is perhaps closing in on some upside targets.

Take a look at these long-term resistance levels.

Gold (XAU/USD) Weekly Forex Chart by TradingView

Can gold head any higher from here?

Because of subdued U.S. inflation reports, the commodity managed to chalk up one other strong run that lifted it past the mid-channel area of interest on the weekly time-frame.

Price can also be as much as the 61.8% Fibonacci retracement level near the $1,900 resistance, which could persuade bulls to book profits for now.

Sustained bullish momentum past this point could spur a test of the descending channel top closer to the important thing $2,000 barrier.

Note that Stochastic is already indicating overbought conditions, which suggests that buyers could use a break and permit sellers to take over. If that happens, gold could slump back to nearby support levels like the realm of interest at $1,800.

Stronger selling pressure might even drag it back all the way down to the swing low near $1,600 or the channel bottom.

Nevertheless, the 100 SMA is above the 200 SMA to verify that market players are very much within the mood to purchase gold as of late.

If you happen to’re hoping to catch the rally, don’t forget to maintain tabs on headlines affecting overall risk sentiment, in addition to global rate of interest expectations.

This content is strictly for informational purposes only and doesn’t constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure that you understand the risks involved.

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