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Gold prices saw large, broad movements during the previous trading session, fueled by strong upward momentum that pushed the price to a high of $3,392 per ounce.
From a technical perspective, the 4-hour chart shows that the simple moving averages continue to support the daily uptrend. However, negative signals are beginning to emerge from the Relative Strength Index (RSI), indicating overbought conditions. This may lead to a temporary correction as traders engage in profit-taking after the recent surge.
While the broader bias remains bullish, we cannot rule out the possibility of a downward corrective phase to consolidate gains and build fresh momentum for the next leg higher. The next key targets for the uptrend are located at $3,402 and $3,443.
It’s important to note that a confirmed break below $3,350 could expose gold to temporary downside pressure, leading to a potential retest of $3,310 and $3,300 before any attempt to resume the uptrend.
Traders should exercise caution in light of ongoing global trade tensions and the high-risk environment. All scenarios remain possible, and market volatility may persist.
Disclaimer: Trading in CFDs involves risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for gold.
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