Technical analysis – Gold climbs back over 5,000, can it hold above it?
|- Gold extends Friday’s strong rebound above the 20-day SMA.
- Supported by a slightly weaker dollar and rising geopolitical risks.
- Rebound still lacks strong technical momentum.
Gold is rising over 1% today, building on Friday's 4% gain, to trade back above the key 5,000 key threshold for the first time in almost a week, helped by bargain hunting, lingering concerns over US-Iran tensions and a softer dollar. Meanwhile, investors await key US economic data due this week to gauge the US interest rate trajectory.
A sustained close above 5,000 could open the way toward resistance at the 61.8% Fibonacci retracement level of the January-February selloff from the record high near 5,141. A break higher, could lead to a gain toward the 5,342-5,430 range.
However, the technical indicators are not fully endorsing the bullish momentum. While still in positive territory, the RSI is hovering only slightly above neutral, and the MACD remains above zero but is easing below its red signal line.
This suggests the market could still face a pullback from current levels, which represent a strong technical barrier. Initial support lies at the 20-day simple moving average (SMA) at 4,891, a break below which could expose 4,685, which capped losses last week, followed by the medium‑term ascending trendline near 4,590.
Overall, gold is attempting to break above a significant technical threshold, having retraced nearly half of the steep decline from its record high. Yet the rebound continues to lack strong momentum, and only a sustained move back toward 5,100 would set the stage for a potential retest of record territory in the near term.
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.