Gold skyrocketed to a new seven-month high of 1,865, exiting from the medium-term ascending channel, suggesting that the recent uptrend is likely to stay in place for now. The RSI is standing in the overbought territory, while the MACD is extending its bullish momentum above its trigger and zero lines.
In case the pair continues its direction to the upside, the bulls will probably challenge the previous top at 1,878. A break higher, could last until the 2,000 psychological mark, registered in April 2022.
Alternatively, any declines may drive the price towards the 1,850-1,857 support area before the 23.6% Fibonacci retracement level of the up leg from 1,740 to 1,865 at 1,835. Beneath the latter, the 1,833 barrier and the 20-period simple moving average (SMA) at 1,835 come into view. Even lower, the 38.2% Fibonacci of 1,817, which overlaps with the 50-day SMA may attract bears attention.
Turning to the medium-term picture, the pair switched to strongly bullish after the rally towards 1,865 despite the latest fall in the 4-hour chart.
