- Gold Price Analysis: Neutral-to-Bearish Bias as Volatility Remains Low
- Market Outlook: Potential US Economic Slowdown Disregarded as Gold Hovers
Gold price maintained a muted tone around the 2,900 mark as the new week began, showing low volatility despite concerns about a potential US economic slowdown. The precious metal has been trading around its 20-day simple moving average (SMA) for the fourth consecutive day, waiting for a new catalyst to determine its direction.
After an initial rebound attempt at the beginning of the month, upside momentum quickly faded, raising fears that the decline from the all-time high of 2,954 is not yet over.
With the Relative Strength Index (RSI) trending downwards and the stochastic oscillator close to a negative crossover, optimism for a bullish continuation is diminishing. A close below the 20-day SMA and the key 2,900 level could shift focus back to the 2,855 support area.
A breach of this support level could lead to further downside towards the 50-day SMA, coinciding with the 38.2% Fibonacci retracement level of the December-February rally at 2,810. A significant drop below the October 2024 high of 2,790 might accelerate losses towards the critical support zone at 2,720.
On the other hand, if gold breaks above the nearby resistance at 2,920, bullish momentum could pause near the previous high of 2,954 before aiming for a fresh all-time high around 2,980. Further upside potential could see the rally extending towards the key trendline region of 3,025-3,050.
To summarize, gold is currently exhibiting a neutral-to-bearish bias. A decisive move above or below the 20-day SMA is likely to determine the next significant market direction.