Gold: at a crucial levelThe price of gold perfectly fitted into the technical chart indicators during the previous week. Alongside that this is the dream of any technical analysts, still, it moved exactly in line with expectations, and chart indications. Historical highs from April and October 2024 set the indication for the next level of the price of gold, which occurred during the previous week. The price of gold reached the new all time highest level at $3.056. It also reached the very important cross-road level.
The RSI reached a clear overbought market side, at the level of 73. From now on, it could be expected a short term reversal toward the oversold market side. The moving average of 50 days is still diverging from MA200, indicating that the cross is not in store for some time in the future.
Since the price of gold reached the significant level indicated in the technical analysis, there are two possible further moves. The first possible option would be that the price could breach the current $3.050 level to the upside. In this case it will continue to move in an uncharted territory, and the level of $3.050 would become the new strong support level. The second option would be a short term reversal. In this case the first next stop could be the level of $2.950, which was a high from February this year. From this level the price of gold could again revert back, where the new height would be around $3.100. Both the first and the second options are just possibilities that charts are currently showing. Which path the gold will choose, the week ahead will show.
