fxs_header_sponsor_anchor

Analysis

Gold in neutral mode, awaiting next signal

Gold in neutral mode, awaiting next signal

  • Gold faces low volatility around 20-day SMA.

  • Short-term bias looks neutral-to-bearish.

Gold maintained a muted tone around the 2,900 mark as the new week kicked off, disregarding concerns about a potential US economic slowdown. The precious metal continues to hover around its 20-day simple moving average (SMA) for the fourth-consecutive trading day, awaiting a fresh directional catalyst.

Upside momentum quickly faded after a rebound attempt at the start of the month, reinforcing fears that the decline from the all-time high of 2,954 has yet to bottom out.

With the RSI trending downwards and the stochastic oscillator on the verge of a negative crossover, optimism for a bullish continuation is dimming. If the price closes below its 20-day SMA and the 2,900 round-level, attention will shift back to the 2,855 support area. A breach of this floor could pave the way for further downside toward the 50-day SMA, aligning with the 38.2% Fibonacci retracement level of the December-February rally at 2,810. A firm drop below the October 2024 high of 2,790 could accelerate losses toward the critical support zone at 2,720.

On the flip side, if gold manages to cross above the nearby resistance of 2,920, bullish forces could initially pause near the top of 2,954 before aiming for a fresh all-time high near 2,980. Beyond that, the rally might extend toward the key trendline region of 3,025-3,050.

In summary, gold currently maintains a neutral-to-bearish stance. A decisive break above or below the 20-day SMA will likely set the stage for the next significant market move.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2025 FOREXSTREET S.L., All rights reserved.