Gold recently experienced a correction from its all-time high, pulling back sharply and breaking below the immediate support at the 23.6% Fibonacci retracement level. This drop signals a temporary pause in the bullish momentum, suggesting a phase of consolidation. However, the broader trend remains positive, supported by strong technical indicators.
The bullish outlook is reinforced by a “Golden Cross” formation, where the 20-period Moving Average (MA) has crossed above the 60-period MA. This crossover is a widely recognized bullish signal, indicating a potential long-term uptrend. Historically, such a crossover attracts new buyers, as it reflects a shift in market sentiment and strong upward momentum.
Moreover, the Relative Strength Index (RSI) has corrected from overbought levels and is currently hovering near its lower range, around 30. This suggests a potential rebound as the RSI dips into a zone where buying interest typically resurfaces. If the RSI can sustain a move back above 50, it may confirm renewed bullish momentum.
In summary, while the recent pullback hints at near-term weakness, the underlying trend remains upward due to the Golden Cross and improving RSI, with key support levels likely attracting new buyers. A bounce from current levels could set the stage for another test of the highs, especially if macroeconomic factors continue to favor safe-haven demand.
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