[ad_1]
Gold prices rose following Moody’s downgrade of the U.S. credit rating, triggering a risk-off shift in markets. However, growing investor skepticism is emerging, with 45% now viewing gold as overvalued. Despite safe-haven demand, gold may have peaked for now, as positioning is overcrowded and the outlook remains cautiously bullish long-term, but near-term gains may be limited unless geopolitical tensions escalate further. Treasury rhetoric on tariffs added to uncertainty, supporting gold for the time being..
From a technical point of view, the price of gold has rebounded at a major technical support level on the chart, consisting of the lower band of the Bollinger bands, the 50-day moving average, and the 61.8% of the Fibonacci retracement level. Currently, it is testing the resistance of the 50% of the daily Fibonacci retracement level while the Stochastic oscillator is at neutral levels.
The moving averages are confirming the overall bullish trend despite the recent sell-off; therefore, it is possible to see a minor bullish run in the upcoming sessions. If this happens, then the first area of potential resistance might be seen around $3,300, which is the psychological resistance of the round number as well as the 38.2% of the daily Fibonacci retracement level.
This article was submitted by Antreas Themistokleous, an analyst at Exness.
[ad_2]
