Gold is currently on the rise after finding support around the 2,450 zone recently. Despite this upward movement, gold is still trading within a sideways range that has been in place since April. The Relative Strength Index (RSI) has bounced back from near its 50 line, indicating a strengthening upside momentum. Additionally, the Moving Average Convergence Divergence (MACD) is showing signs of bottoming slightly above zero, suggesting further potential for upward movement.
If gold manages to break above the key resistance level of 2,388, it could confirm the bullish case and pave the way for a potential retest of the high of May 22 at 2,426, or even the peak of the day before at 2,434. If the bullish momentum continues, gold may even target the record high of 2,450. On the other hand, a dip below 2,340 could lead to declines within the current sideways range, with potential support levels at 2,320 and 2,290.
In summary, gold is showing short-term bullish momentum, but the broader picture indicates that it is still range-bound. A decisive break above the resistance level of 2,388 may be necessary to signal a more positive outlook for gold prices. Investors should keep an eye on key levels and indicators for potential trading opportunities in the precious metal market.
