Gold Struggles After Hitting New Highs: Gold reached a record $2531 per troy ounce but saw a retreat of over 1% on Thursday, testing the upward trend established in April. A divergence is forming, indicating potential deeper declines. Traders should watch for a possible pullback to $2420, with a trend break only confirmed if prices fall below $2380, the previous local lows
Gold Struggles After Reaching New Highs
Gold started the week with a decisive renewal of all-time highs, reaching the maximum spot price of
$2531 per troy ounce. However, the bulls failed to seize the initiative finally, and on Thursday, gold
lost more than 1%, falling back to the depths of the upward trend established in April.
We also pay attention to the exhaustion of the growth momentum. On daily timeframes, a divergence
is forming between a sequence of increasingly higher price highs and increasingly lower RSI highs.
This is considered a harbinger of a deeper dive, and significantly, the most recent reversal occurred
from levels below the overbought area. Thus, it is worth paying attention to how events will unfold
next.
Trading within the above trend opens the door for a relatively quick pullback to $2420. It will be
possible to speak about the break of the upward trend only when the price falls below $2380 – the
previous local lows.
