Gold Holds Firm Around $2400 Threshold

Following a significant pullback of $100 per ounce from its recent peak, gold has once again approached the psychological threshold of $2400.

Market sentiment remains largely positive, buoyed by ongoing geopolitical tensions and concerns over potential escalation in the Middle East conflict. These factors continue to drive demand for safe-haven assets, counterbalancing any downward pressure on gold prices stemming from a stronger dollar.

Despite the recent pullback, which was sharp in nature, it was constrained by the upward trend of the 10-day moving average, currently situated at $2351. This suggests that bullish momentum remains robust.

However, there are indications of overbought conditions in daily market studies, accompanied by bearish divergence in the Relative Strength Index (RSI). These signals serve as a cautionary note, hinting at the possibility of a more pronounced correction.

In such a scenario, key support levels at $2300 and $2283, corresponding to the psychological threshold and the 20-day moving average respectively, are expected to act as strong buffers against further downside. Any retracement to these levels would likely be viewed as a healthy correction before a potential resumption of the upward trend.

A breakthrough past the recent record high of $2431 would pave the way for a test of the next significant resistance level at $2500.

Res: 2400; 2431; 2453; 2500

Sup: 2374; 2351; 2320; 2300