Gold Nears Long-Term Highs but Struggles to Break Resistance
02 September 2024
In today's technical analysis, we're focusing on Gold, which is currently hovering near its long-term highs. The price is approaching a significant horizontal resistance level at $2,527 per ounce, marked by a black line. Throughout last week, Gold attempted multiple times to break above this resistance but ultimately failed. This repeated rejection could signal the potential for a short-term correction, especially considering we've also seen a break below the mid-term trend line, marked in green.
Given this setup, a short-term bearish sentiment seems to be in play, with a likely target around the orange horizontal support at $2,477 per ounce. The probability of reaching this level is relatively high, considering the recent price action. However, for a clearer long-term outlook, we'll need to wait for a decisive breakout above the black resistance or below the orange support. Until then, the market remains in a watch-and-wait mode, with traders poised for the next significant move.