Gold hints at bullish continuation but key psychological level keeps prices at bay
Gold prices have recovered after steadily declining within the blue descending channel, now attempting to break out of the channel, but the $2050 level could keep a bullish continuation at bay for now.
$2050 is a significant level as it provided weekly highs in August 2020 and April 2023 and obviously carries psychological significance too. That being said, gold has shown to be susceptible to large spikes to the upside by virtue of its safe-haven appeal during a period of elevated geopolitical instability, which could render $2050 ineffective.
The MACD indicator hints at a bullish crossover, suggesting upside momentum is building. In addition, the 50-day simple moving average also acts as dynamic support – propelling lower prices. The prior all-time high of $2081.80 is the next level of resistance.