Gold has surpassed the upper limit of a consolidation range that has persisted since February, indicating a potential continuation of its upward trend. Daily MACD readings suggest reduced upward momentum compared to February, yet no significant pullback signals have emerged in price actions.
Targets for gold are projected at $3015 and $3035/3050, which aligns with the upper boundary of an ascending channel. The recent pivot low at $2880 is identified as a key support level should a temporary retracement occur.
Breakout Confirmation
This breakout suggests that the asset’s long-standing hesitation has given way to renewed buying pressure. While the MACD indicator shows momentum isn’t as strong as it was earlier in the year, price movements themselves have not demonstrated any convincing signs of reversal.
Price objectives extend towards $3015 and further into the $3035-$3050 zone, a level consistent with the upper boundary of an established rising channel. This structure implies that, unless a failure occurs, further gains are still in play. On the other hand, $2880 serves as a vital reference point in the event of downward pressure, offering a level where buyers could regain control.
Meanwhile, US equity indices are hovering near peak values, with the Nasdaq 100 leading the charge and the S&P 500 not far behind. The upward push in stocks has not yet encountered meaningful selling pressure, reinforcing a broader risk-on sentiment. As long as the S&P 500 stays above 5260, short-term weakness is unlikely to escalate into something more severe.
Currency Market Trends
In the FX space, the euro’s recent decline following European political developments has led to notable moves against the dollar. The currency pair is approaching prior lows, with 1.0650-1.0670 acting as a key area to monitor for a response. If this zone holds, it could provide scope for a rebound. If not, the possibility of further downside opens up.
Given these movements across asset classes, it’s necessary to remain aware of how these technical levels influence market participation. A stronger dollar or a renewed downturn in equities could introduce headwinds, while continued bullish momentum in stocks might provide underlying support. Keeping an eye on how traders react at these price points will be critical in the days ahead.
