The price of Gold reached a new four-week high of $1,943 early on Wednesday before experiencing a period of consolidation with upward momentum. Despite a slight pullback, the Gold price remains robustly above the crucial 20-Daily Moving Average (DMA) at $1,930, a level it convincingly breached earlier.
The 14-day Relative Strength Index (RSI) indicator is showing an upward trajectory above the midline, indicating the potential for further gains.
The next obstacle for the Gold price is located at the September 20 high of $1,947, and if it surpasses this level, it will test the September 1 high of $1,953. A sustained breakthrough above the latter could pave the way for a new uptrend targeting the supply zone between $1,970 and $1,980.
However, if the Gold price fails to establish strong support above the 200 DMA at $1,930, a retracement towards the 100 DMA support at $1,923 is likely. Going further downwards, Gold sellers will have their sights set on the low from the previous day, which was at $1,912.
Our analysis suggests that the Gold price has reached a four-week high and could continue its upward movement if it manages to breach key resistance levels. Conversely, a failure to hold above certain DMA levels may lead to a retracement towards lower support levels, with $1,912 being a potential target for Gold sellers.