FxNews—Gold prices began a consolidation phase from $2,600 (23.6% Fibonacci support level), trying to stabilize itself above the 100-period simple moving average. As of this writing, the yellow metal trades at approximately $2,646.
Technical Indicators Hint at Low Momentum Market
As for the technical indicators, the RSI 14 and Stochastic depict 51 and 62 in the description. Meanwhile, the Awesome Oscillator recent bar turned green.
These developments in the technical tools suggest that the trends suffer from a lack of momentum and uncertainty in the market. Therefore, traders and investors should wait for a break out to plan their strategies wisely.
Gold Fills Bearish Fair Value Gap Amid Market Uncertainty
Gold is filling the bearish fair value gap with the critical resistance level at $2,665. From a technical perspective, the XAU/USD trend outlook should remain bearish below this level. In this scenario, the commodity in discussion could revisit the 23.6% Fibonacci support at $2,600. But bears must close below the ascending trendline first for the downtrend to be triggered.
On the other hand, a new bullish wave could be formed if bulls pull XAU/USD (Gold) above $2,665. If this scenario unfolds, the current uptick in momentum could reach the November 24 high at $2,710.