Gold is likely to retest the latest record high and attack psychological $2500 level in coming months, as all key factors that drive the metal’s price remain supportive.
Persisting geopolitical tensions and threats of escalation continue to underpin demand, along with growing signals of stronger monetary easing and one of the most significant – gold purchases by central banks – led by China.
However, overbought conditions on monthly chart and long upper shadows of April/May monthly candlesticks, as well as June’s candlestick so far being in the shape of long-legged Doji, signal rising offers and indecision, indicating that bulls might be running out of steam.
This suggests that metal’s price may hold in extend consolidation, which so far finds ground at $2300 zone, with dips not to exceed solid supports at $2200 (psychological / Fibo 38.2% of $1810/$2450) to keep larger bulls intact for fresh push higher.
