Is gold ready to retest its record high? Technical Analysis
MarketsFN Team
The shiny metal retraced nearly 9% from its record area 2,080 $/oz reached in May and then at the end of last month started to develop higher lows and higher highs, and pattern recognition suggesting the commodity is on a bullish channel where it just bounced from the lower side.
Intermediate framework is bullish with next resistance area 1983 and then 2,000. A breakout above this level would likely provide momentum to retest area 2,080 $/oz.
If XAU/USD would lose upside potential due to another short term bearish leg, the most important test beneath the lower side of the channel is the 200 day SMA , now in area 1,870.
On a longer time frame perspective, in case the commodity would reach its record high but selling forces would defend the level, an intermediate to long term trading range market could also develop.
At the moment gold is trading 1,956.8 , down by 0.18%, the RSI indicator at 58.09 has not reached yet overbought level , and standard deviation on 20 sessions is far below the higher side of its 2023 range.
