Gold bulls have been making steady progress over the past week from the recent low of 1196.94 all the way to the recent high of 1225.25.
Volatility among investors began relatively low, as indicated by a balanced RSI indicator, along with shallow interactions with the 76.4% (1,203) retracement level. Once the price action finally crossed the 50-hour Moving Average (blue line), investors took flight and broke through the 76.4% and even 61.8% (1,207) levels. Seeing that the 100-hour Moving Average (red line) was within range, investors took their shot of pushing further above into the 50.0% (1210) level, attempting to reach the 23.6% (1,218) level, before settling back to the initial 50.0% level for support.
From there, investors had held their ground between the 38.2% and 50.0% levels until the 50-hour Moving Average crossed over 100-hour Moving Average, raising moral among the bulls to push slightly, but surely, above the 38.2% level. The price action then made fateful contact with another important indicator, the 200-hour Moving Average (white line). Once investors caught scent that the price action crossed above the 200-hour Moving Average, they lead another charge that went above the 23.6 level, reaching overbought territory in the RSI.
Due to such conditions, the bulls had turned back to the 23.6% resistance-turned-support level, nearly at the 50.0 RSI level, securing their place there, made ever-more locked by the 50-hour Moving Average crossing above the 200-hour Moving Average.
Based on this analysis, it’s safe to say that the uptrend has a shot of continuing further upward to the mid-1230s. RSI has recorded very steady volatility throughout the week, while the 50-hour Moving Average successfully crossed above the 100 and 200-hour Moving Averages, showing signs of relative growth and acting as new resistance-turned-support levels for gold.