Gold Prices Hit Record High at 2,817 – Technical Indicators Point to Possible Correction

In a recent trading session, gold prices surged to a fresh high of 2,817, surpassing the key 2,800 mark before pulling back. Technical indicators now suggest that the market may be overextended, signaling a potential downside correction.

The Relative Strength Index (RSI) is currently declining from the 70 level, testing a one-month uptrend line. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing a decrease in positive momentum above its trigger and zero lines.

If gold prices fall below the 2,790 level, the next support area is likely to be around 2,720-2,730, where the short-term ascending line and 20-day simple moving average (SMA) converge. Further downside movement could bring prices to the 50-day SMA at 2,675 and the long-term rising trend line near the 2,655 mark.

On the other hand, if the bullish momentum continues, gold could push higher towards uncharted territory, targeting psychological levels like 2,900 and 3,000.

Overall, while gold prices have been in a bullish trend, the key level of 2,790 will be crucial in determining whether the market will see further upside potential or a bearish retracement. Stay tuned for more updates on this developing situation.

Analysis: Gold prices have recently reached a record high, but technical indicators suggest that a correction may be on the horizon. Traders should keep an eye on the key level of 2,790 to gauge the market’s next move. This information can help investors make informed decisions about their gold holdings and potential trading strategies.

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