Gold gives up gains on peace deal hopes
|- Gold retreats from a fresh all-time high after the US–Ukrainian presidential talks.
- Technical indicators turn lower in overbought territory; support near 4,380.
Gold entered a corrective phase following a Christmas bullish stretch that lifted prices to a new all-time high of 4,449, as a face-to-face meeting between the U.S. President Donald Trump and Ukrainian leader Volodymyr Zelensky in Florida concluded on Sunday with hopes that a peace deal could be achievable, despite no clear details or timelines being provided.
Having rallied for eight weeks with minimal losses during the bullish phase, some consolidation appears normal, as the RSI and the stochastic oscillator seem to have peaked in overbought territory.
Immediate support could emerge near October’s high of 4,380 or slightly lower at 4,325, where the 20-day simple moving average (SMA) is converging. Further declines from there could shift the short-term outlook back to neutral, likely pressing prices toward the support trendline at 4,220 and the 50-day SMA at 4,177.
In the event that bulls return, pushing prices above 4,550, the door could open for the 161.8% Fibonacci extension of the previous downleg at 4,685 and the ascending trendline from April at 4,725. The psychological 4,800 level will also be closely watched.
Overall, gold may experience some profit-taking in the short-term following another record-breaking bull run. A clear close below 4,380 would downgrade the short-term outlook to neutral.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.