Gold Price Analysis: Is It Time to Buy or Sell?
The price of gold fell 4% at the beginning of the week, attributed to the ceasefire between Lebanon and Israel. However, the precious metal has since rebounded, recovering around half of that initial drop. Gold found support at $2,600 per troy ounce, a level that also provided support in late September and early October.
Technically, the recent sharp dip indicates that the bears are currently in control, as the price fell below the 50-day moving average after attempting to consolidate higher. Confirmation of this trend will be crucial. A further drop below $2,600 could lead to the area of this month’s lows at $2,540 becoming the short-term target for sellers, potentially pushing the market towards $2,400. The long-term target, in this scenario, would be the $2,000 an-ounce area.
Despite these fluctuations, a slow but steady rally from Tuesday to Friday suggests cautious buying, signaling continued interest in gold even at its current historically high levels. A weekly and monthly close above $2,670 could indicate further gains, potentially marking a return to territory above the 50-day moving average. A rally above $2,720 (previous highs) could eliminate the possibility of forming a trend of lower local highs.
If this trend continues, the chances of a further attack on historic highs will significantly increase, with a potential target of $3,400. This represents a 22% increase from the previous highs and nearly 28% from the current price. However, it is advised to proceed with caution and take small steps for now.
In conclusion, the current analysis suggests a potential bullish trend for gold, with the possibility of reaching new highs in the near future. Investors may consider buying at the current levels and monitoring the market closely for further opportunities. Remember to stay informed and make informed decisions to maximize your investment potential.
By The FxPro Analyst Team
Analysis:
– Gold price initially fell due to Lebanon-Israel ceasefire
– Rebounded by recovering half of initial drop
– Found support at $2,600 per troy ounce
– Bears currently in control, below 50-day moving average
– Further drop could target $2,540 and $2,400
– Long-term target at $2,000
– Slow rally indicates cautious buying
– Weekly close above $2,670 could signal further gains
– Rally above $2,720 could eliminate lower highs trend
– Potential target of $3,400
– Proceed with caution and take small steps
– Consider buying at current levels for potential gains