Gold has been trading comfortably above a rising trend line, and it appears that there will soon be another decline. Will there soon be another surge to all-time highs?
This precious metal has been rising recently due to a combination of flows into safe havens and some anti-USD sentiment! This month, gold has created higher lows linked by a rising trend line that has held, and another dip is currently occurring.
After all, dollar bulls were persuaded to surge on increased predictions that the Fed could postpone interest rate cuts this year by stronger than anticipated U.S. CPI data.
The gold advance appears set to continue rather than reverse, according to technical indicators, with the 100 SMA above the 200 SMA indicating positive momentum. To further strengthen its position as a floor, the trend line and the faster-moving MA align.
Additionally, it appears like buyers are targeting the 38.2% Fib, which also happens to be the trend line support, for XAU/USD. Larger declines may still challenge the lower retracement levels, but the 200 SMA dynamic support level ($2,296.40), the pivot point level ($61.8%) around the $2,300 mark, may be the line in the sand for a bullish correction.
Gold may continue to rise to the swing high, which is located approximately around R1 ($2,364.27), or it may even reach new highs at R2 ($2,398.39), which is close to a significant psychological mark, if any of these are able to contain losses.
