Gold Prices Maintain Support Amid Fed's Calm Expectations
: Gold prices (XAU/USD) continue to exhibit a sideways trend as the European trading session unfolds on Thursday, remaining constrained within a narrow trading range just below the highest level since May 5 touched the previous day. From a technical standpoint, the Relative Strength Index (RSI) on the daily chart is holding above the 70 mark, indicating slightly overbought conditions and hindering new bullish bets from traders. This suggests that any price correction may attract new buyers near the overnight low volatility area, around $2,035.
Immediate support is anticipated around the $2,020 region, with a strong horizontal resistance zone at $2,010-$2,008 acting as a crucial barrier. The latter is poised to serve as a solid foundation for gold prices, and any decisive break below it could pave the way for deeper losses. On the flip side, the recent multi-month high around the $2,052 region, attained on Wednesday, seems to be an immediate resistance level for gold prices. Sustained strength beyond this level will enable the bullish camp to retest the all-time high zone, established around $2,079-$2,080 in May.
In summary, gold prices are currently supported by a stable outlook from the Federal Reserve, and the technical indicators suggest a potential for new buying interest on any price pullback. However, the resistance around $2,052 remains a significant hurdle, and a sustained breach could open doors for further upward momentum, challenging the all-time highs achieved earlier this year.
Immediate support is anticipated around the $2,020 region, with a strong horizontal resistance zone at $2,010-$2,008 acting as a crucial barrier. The latter is poised to serve as a solid foundation for gold prices, and any decisive break below it could pave the way for deeper losses. On the flip side, the recent multi-month high around the $2,052 region, attained on Wednesday, seems to be an immediate resistance level for gold prices. Sustained strength beyond this level will enable the bullish camp to retest the all-time high zone, established around $2,079-$2,080 in May.
In summary, gold prices are currently supported by a stable outlook from the Federal Reserve, and the technical indicators suggest a potential for new buying interest on any price pullback. However, the resistance around $2,052 remains a significant hurdle, and a sustained breach could open doors for further upward momentum, challenging the all-time highs achieved earlier this year.
