Over the past week, gold prices have rebounded from the psychologically significant $4,000 support level and are now dancing near $4,100 per troy ounce. What triggered the upside? Weaker-than-expected US inflation data, which eased market concerns over further monetary tightening by the Federal Reserve (Fed).
Price behavior around the $4,000 threshold was a particularly important bullish signal. This level has proven to be solid support, withstanding multiple tests and preventing quotes from settling below it. Clearly, buyers are interested in defending this barrier. As long as bullion holds above it, the technical picture remains favorable for further gains.
But let’s dive deeper and analyze several oscillators and their signals. The Relative Strength Index (RSI) has recently climbed above the neutral 50 threshold and is now trending higher, underlining growing bullish momentum. Its values have yet to reach overbought territory, leaving gold with plenty of room to advance. The Moving Average Convergence / Divergence (MACD) Indicator has also surpassed the neutral line from below, entering a positive zone. This combination hints at a fresh uptrend in the making and suggests that buyers are regaining the upper hand. The metal’s next target could be the two-month peak of $4,400 per troy ounce.
The final recommendation:
— Buy gold at the current price of $4,100, aiming for $4,400 within one month.
— Place a Stop Loss order at $4,000 to manage risks if the market plays against us.
This content is for informational purposes only and is not intended to be investing advice.
