Gold Holds Strong Support Near 3,260 Despite RSI and MACD Downturn
Gold prices are currently experiencing a strong support region near the medium-term return line at 3,260. Any attempt to break below this line could signal a bearish correction, confirming the negative momentum indicated by the technical oscillators. The RSI is trending downwards above the 50 area, while the MACD is losing steam below its trigger line.
If further losses occur, the market could move within the ascending channel, reaching the 261.8% Fibonacci extension level of the down leg from 2,790 to 2,535 at 3,200, which coincides with the 20-day simple moving average (SMA). Below this level, key obstacles include the 3,167 support and the 50-day SMA at 3,060.
On the flip side, a bounce off the return line would confirm an upside movement, with the primary resistance level at the all-time high of 3,500. Beyond this point, the 423.6% Fibonacci extension level at 3,600 could act as a barrier to the rally.
In summary, while gold has been displaying a strong bullish trend in the long-term perspective, the short-term bias is currently leaning towards the negative side.
Analysis:
– Gold prices are holding firm near the 3,260 support level despite a downturn in RSI and MACD indicators.
– A break below the support line could signal a bearish correction, while a bounce could lead to an upside move.
– Key levels to watch include 3,200, 3,167, 3,060, 3,500, and 3,600.
– Overall, the long-term outlook for gold remains bullish, but short-term bias is negative.