- Gold rises above 2,600 again
- RSI and stochastics suggest more upside moves
Gold prices are recouping some significant losses that were posted after the Fed’s policy decision on Wednesday to cut rates by 25 bps. The market tumbled to a new one-month low of 2,582 but is currently holding above 2,600. The technical oscillators are gaining some momentum with the RSI pointing slightly up below the neutral threshold of 50. The stochastic oscillator posted a bullish crossover between the %K and %D lines near the 20 level, confirming an upside retracement.
Further bullish movements could pave the way for the 2,625 resistance, which is situated ahead of the moving average lines between 2,640 and 2,665. To endorse the positive tendency in the market, it needs to surpass the previous double top, around 2,725.
On the other hand, a slip below the 2,605 support and a drop beyond the latest bottom of 2,582 could trigger steeper bearish action, leading traders towards 2,554 and 2,536.
To sum up, the yellow metal has been in a bearish correction over the last week, but the broader outlook remains bullish.
