Technical Analysis – Gold trades near key barrier of 1,985
November 2, 2023 10:27 am
Gold pulls back to rest near 1,985 key zone
Daily oscillators detect slowing upside momentum
A break lower could signal the metal’s return within a broader range
Gold has been in a retreat mode since October 30, after hitting resistance near the 2,010 zone. The metal has seen massive gains due to concerns surrounding the conflict in the Middle East, but the current retreat has brought it back near the 1,985 barrier, which acted as the upper bound of the sideways range that contained most of the price action from January 12 until October 27.
The MACD lies above both its zero and trigger lines, but shows signs of topping, while the RSI exited its above-70 zone, and it is now hovering slightly below 70. Both indicators suggest that the geopolitics-related rally is losing momentum and that some further retreat may be possible in the days to come.
A clear close below 1,985 could confirm gold’s return within the aforementioned sideways range and may allow declines towards the 1,950 barrier, marked by the inside swing highs of September 1 and 20. If the bears are not willing to stop there, then a break lower could pave the way towards the lower bound of the range at around 1,885.
On the upside, a rebound and a break above 2010 could signal that the bias remains bullish and that the current retreat was just a breather before the next leg north. The precious metal could next meet resistance at the high of May 10 at around 2,050, the break of which could put the record peak of around 2,080 on the bulls’ radar.
To recap, gold pulled back this week and is now trading near the key barrier of 1,985. A clear close below it could signal the metal’s return within a longer-term sideways range, while a rebound may confirm that the broader bias remains bullish.
Gold pulls back to rest near 1,985 key zone
Daily oscillators detect slowing upside momentum
A break lower could signal the metal’s return within a broader range
Gold has been in a retreat mode since October 30, after hitting resistance near the 2,010 zone. The metal has seen massive gains due to concerns surrounding the conflict in the Middle East, but the current retreat has brought it back near the 1,985 barrier, which acted as the upper bound of the sideways range that contained most of the price action from January 12 until October 27.
The MACD lies above both its zero and trigger lines, but shows signs of topping, while the RSI exited its above-70 zone, and it is now hovering slightly below 70. Both indicators suggest that the geopolitics-related rally is losing momentum and that some further retreat may be possible in the days to come.
A clear close below 1,985 could confirm gold’s return within the aforementioned sideways range and may allow declines towards the 1,950 barrier, marked by the inside swing highs of September 1 and 20. If the bears are not willing to stop there, then a break lower could pave the way towards the lower bound of the range at around 1,885.
On the upside, a rebound and a break above 2010 could signal that the bias remains bullish and that the current retreat was just a breather before the next leg north. The precious metal could next meet resistance at the high of May 10 at around 2,050, the break of which could put the record peak of around 2,080 on the bulls’ radar.
To recap, gold pulled back this week and is now trading near the key barrier of 1,985. A clear close below it could signal the metal’s return within a longer-term sideways range, while a rebound may confirm that the broader bias remains bullish.
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