Gold was firmer in early trade this morning, and back within 1.0% of its all-time intra-day high from Tuesday. The gold rally had a brief pause yesterday, with prices down around 1.3% from Tuesday’s close before buyers came back in.
Source: TN Trader
This helped to keep the gold price comfortably above $3,700. Upside momentum has flattened out to some extent, following a strong run since late August. Gold had previously peaked in April at $3,500, and the daily MACD was very overbought at the time. But, following a brief pullback, gold consolidated in a relatively narrow range throughout the summer.
This helped the MACD to reset around the neutral level. This set the stage for gold prices to take off to the upside again, breaking through resistance at the top of the range just above $3,400. Since then, it hasn’t looked back, coming within 10 cents of $3,800 on Tuesday.
The current price action raises several questions: could it be that gold has now topped, or can it continue to rally from current levels? Alternatively, does gold need another pullback along with an extended period of consolidation? And if so, could this be enough to reset the MACD again, setting the metal up for another rally to fresh all-time highs?
