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.
Author
Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.
