Article by: ETO Markets

Buying from the Chinese central bank and expectations that the Federal Reserve would begin reducing rates in 2024 have been major factors in the precious metal's explosive rise during the last two weeks or so. However, despite decreasing global tensions and a positive risk tone, excessively stretched conditions on the daily chart prevent traders from making new bullish wagers, undermining the safe-haven precious metal.

There is still bullish momentum evident when the Relative Strength Index hits 83. Overbought signals have surfaced, though. After the release of US inflation statistics, investors are expected to take new positions, which is expected to cause the precious metal to move sideways despite rallying to $... For those who are bullish on gold prices, $… psychological level will serve as a strong support level.