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GOLD. The Price of Gold May Fall After a Local Rise

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After a prolonged period of consolidation, the price of gold surged sharply on the back of weak inflation data in the United States, increasing the likelihood of a more active Federal Reserve rate-cutting cycle in the new year 2026. However, this rise may prove to be limited due to the ongoing negotiation process between Washington and Moscow aimed at resolving the Ukrainian crisis.

From a technical perspective, the price may lose its upward momentum, as indicated by the behavior of oscillators on this time frame.

Technical Picture and Trading Idea:

GOLD. The Price of Gold May Fall After a Local Rise - ExpertFX School

The price is trading above the upper Bollinger Band and above the SMA 5 and SMA 14, which are still supporting the upward trend. The RSI is turning downward from the overbought zone, while the Stochastic indicators have entered this zone.

The price of gold may rise toward the 4452.30 level, from which sell positions should be considered, with a potential decline toward 4351.00. A possible entry point for selling is the 4443.25 level.

The material has been provided by InstaForex Company - www.instaforex.com
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