- Gold reaches 2,353.90 above 161.8% Fibonacci extension
- MACD and RSI move higher in overbought regions
Gold prices are experiencing a fresh higher high today around the 2,353.90 level, successfully surpassing the 161.8% Fibonacci extension level of the downward move from 2,079 to 1,810 at 2,245.
The bullish rally started after the rebound off the 1,984 support with the technical oscillators suggesting even further upside structure. The MACD is standing above its trigger and zero lines, while the RSI is pointing up in the overbought territory.
As the price is moving higher, the next resistance levels to have in mind is the psychological number of 2,400 ahead of the 261.8% Fibonacci extension of 2,515.
On the flip side, a dive beneath the 161.8% Fibonacci of 2,245 could take the market towards the immediate support lines of 2,222 and 2,195, which encapsulates the 20-day simple moving average (SMA) at 2,213. Below that, the 2,145 barricade and the 50-day SMA at 2,134 may halt bearish actions.
Summarizing, the broader outlook in the precious metal is strongly positive and only a decline beneath the 200-day SMA, which is standing at 1,999 may switch the view to a bearish one.
