According to today’s XAU/USD chart, gold is trading at approximately $2,628 per ounce, marking a fresh all-time high for the third consecutive trading session on the 20th, 23rd, and 24th of September.
The rise in gold prices is being fueled by:
- market reaction to the Federal Reserve’s announcement on Wednesday to cut interest rates by 50 basis points;
- escalating tensions in the Middle East.
A technical analysis of the XAU/USD chart reveals that the price of gold is trending within an upward channel (highlighted in blue), with bullish momentum becoming more prominent in September. Since the start of the month, bulls have successfully:
- surpassed the $2,530 resistance level;
- pushed the price into the upper region of the blue channel;
- created a steeper ascending trend (marked by yellow lines).
That said, it’s important to observe that:
- each successive peak is only marginally higher than the last;
- the RSI indicator is showing divergence.
This indicates that the bullish momentum might be slowing down. Traders could potentially start taking profits from long positions, leaving the price exposed to a correction, possibly towards the lower edge of the yellow channel, which is supported by the blue median line.
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