- Gold stabilizes after last week’s sharp slide
- Oscillators point to corrective phase
- A break of record high could challenge $2,500
- For the outlook to change, a dip below $2,145 may be needed
Gold stabilized on Friday and is recovering ground today, following a decent drop from its record high at around $2,450 on May 20. The precious metal remains well above the uptrend line drawn from the low of October 6 and above all three of the plotted exponential moving averages (EMAs), which means that the broader outlook remains positive.
The daily oscillators are also corroborating that view, suggesting that last week’s slide was just a corrective phase within the broader uptrend. The RSI has started rebounding from near its 50 line, while the MACD, although below its trigger line, is still lying above zero.
If the bulls are strong enough to stay in the driver’s seat, they could soon aim for another test near the record of $2,450, the break of which will take the price into uncharted territory and perhaps aim for the round number of $2,500. With no prior highs and inside swing lows to mark future resistance zones, a break above $2,500 could pave the way for the next psychological area, at around $2,600.
On the downside, for the outlook to start shifting to bearish, a dip below $2,145 may be needed. This would confirm the break of the aforementioned uptrend line as well and may allow declines towards the $2,065 zone.
To sum up, gold corrected lower last week, but the bulls have managed to hold it in an uptrend, which suggests that there are still chances for a new record high soon.
