Gold: $2.4K testing continues

During the previous two weeks the price of gold attempted for one more time to clearly break the 2.4K level, but for one more time investors decided that it is too early for such a move. A fresh new all time highest level has been reached at the beginning of the week, at the level of $2.480, when the reversal point began. The rest of the week gold was traded with a downtrend, ending the week at 2.4K.

The RSI reached a clear overbought market side, while the indicator is ending the week at the level of 54. The market participants are still not ready to cross the 50 line, and start the path toward the oversold market side. Moving averages of 50 and 200 days continue their path with two parallel lines with an uptrend, in which sense, there is no indication of a potential cross in the coming period, as well as, a potential for a change in trend.

Current charts are indicating higher potential that the price of gold will continue to test a strong support / resistance line at 2.4K. Some volatility around this level is the most probable for the week ahead. There is some lower probability that the price of gold might modestly revert back toward the level of $2.450, however, the pressure to the downside will hold. Analysts are noting that the narrative over the potential rate cut in the US will impact investors to search for the asset with higher risk, in which sense, the pressure on the price of gold might continue in the short term future period.