The Price of Gold Continues to Hit Record Highs
As shown by today's XAU/USD chart, the price of an ounce of gold is around $2,628, marking a new all-time high for three consecutive trading days: 20th, 23rd, and 24th September.
The bullish sentiment in the gold market is driven by:
the reaction to Wednesdays decision by the Federal Reserve to cut interest rates by 50 basis points;
another surge in tensions in the Middle East.
Technical analysis of the XAU/USD chart shows golds price is moving within an upward channel (marked in blue), with the bullish momentum becoming more pronounced in September. Since the beginning of the month, bulls have managed to:
break through the resistance level of $2,530;
lift the price into the upper half of the blue channel;
establish a steeper upward trajectory (shown by yellow lines).
However, its worth noting that:
each new record high is only slightly above the previous one;
the RSI indicator is forming a divergence.
This suggests that the bullish momentum may be weakening. Its possible that market participants may look to take profits from long positions, leaving the price vulnerable to a pullback, potentially towards the lower boundary of the yellow channel, which is reinforced by the blue median line.
Read more: https://fxopen.com/blog/en/oa-the-price-of-gold-continues-to-hit-record-highs/
Text source: Forex Trading Blog
