Gold Reaches Key Level After Correction and Recovery
Gold is back on traders' radar after reaching a key technical level. During August, the metal experienced a strong recovery, followed by a correction that brought it to a zone where buyers emerged. This level refers to the 'halfway back' point of a significant movement. Futures closed at $5,508.6 per ounce on January 29, before falling to $4,048.7 on July 16, establishing a midpoint at $4,778.7. The recovery in August brought futures to $4,755 on August 25, just below the technical level, while the RSI indicator entered overbought territory. Subsequently, sellers regained prominence, and the price began to retreat. The correction generated a new technical reference, with the midpoint of the upward movement from the July low to the August high located at $4,373.3. This week, gold touched $4,369.7 before rebounding. The market is caught between two references: sellers near the midpoint of the downward movement and buyers defending the midpoint of the subsequent rally. Although these levels are not infallible, they are crucial for observing price reactions. This Friday, gold shows a 1.4% retreat, remaining above $4,470 per ounce, benefiting from the decline in U.S. bond yields and a weaker dollar. Statements from Federal Reserve official Christopher Waller reduced expectations for a new rate hike in September.
-- Price
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