Gold is trying to consolidate 25/10/2023

Gold prices reflected the expected upward trend during the previous technical report, in which we relied on trading stability above the strong support level of 1969 at the time of the report’s release. We explained that sneaking below 1969 postpones rising opportunities, leading gold towards 1958, posting its lowest level at $1953 per ounce.

Technically, today, looking at the 4-hour chart, the Relative Strength Index is trying to gain more upward momentum. This occurs as gold prices continue to receive a positive stimulus from the 50-day simple moving average.

With the continuation of stability and consolidation above 1969, this encourages us to maintain our positive expectations, but on the condition that we witness a clear and strong breach of the 1977 resistance level represented by the 38.20% Fibonacci retracement. This motivating factor opens the door towards 1980, the first target, and then 1995, the next station, whose targets may later extend towards 2002.

Closing at least an hour candle below 1969 puts the gold price under negative pressure with the target of 1958, and breaking the latter forces the price to visit 1945/1947.

Note: Stochastic indicator is negative.

Note: Today, the markets are awaiting high-impact data issued by the Canadian economy, represented by the Bank of Canada’s monetary policy report, interest statement, and interest rate decision, in addition to the speeches of the chairman of the Federal Reserve and the European Central Bank. We may witness fluctuation in the markets during the release of these data.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1956.00	R1: 1983.00
S2: 1941.00	R2: 1995.00
S3: 1929.00	R3:  2010.00