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Gold Prices Hit Fresh All-Time Highs - Where Will the Rally Stall?

Published 09/16/2024, 03:03 AM
XAU/USD
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GC
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  • Gold posts bullish days
  • Prices find support at 20-day SMA
  • MACD and RSI in positive areas

Gold prices are skyrocketing to another fresh all-time high today around 2,589.40 with the next major obstacle coming from the 2,600 round number. The price has recorded an aggressive buying interest over the last couple of days after the strong bounce off the 20-day simple moving average (SMA) at 2,510.

Technically, the MACD oscillator is extending its upside move above its trigger and zero lines, while the RSI is trying to overcome the 70 level. Both are confirming the sharp bullish momentum in price.Gold-Daily Chart

Immediate resistance is coming from the 2,600 and 2,700 psychological mark ahead of the 261.8% Fibonacci extension level at 2,800, of the down leg from the peak in March 2022 at 2,070 and the low in October 2022 at 1,616.

In the negative scenario, a decline beneath the 2,531 support may send traders to the 20-day SMA at 2,518 before resting near the long-term ascending trend line around 2,483. Also, the 50-day SMA lies near the previous level and any break below that could switch the outlook to a neutral one.

 To summarize, the precious metal looks strongly positive with a new all-time high today and as long as it stands above the 200-day SMA, the outlook could remain bullish. 

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