Gold Breaks Through Key Resistance Level
A UBS research report points out that gold prices have broken through the key resistance level of $4,250. If prices remain above the $4,200–$4,250 range, it will confirm a short-term reversal, with former resistance turning into support. A subsequent breakout above $4,450–$4,500 would challenge the $4,650–$4,700 level. Technical indicators show strengthening momentum, with the RSI not yet in overbought territory. The bank had previously predicted this breakout would be a strongly bullish signal
In its research report on August 10, UBS stated that gold prices broke above the key resistance level of $4,250. If gold prices can remain above the $4,200–$4,250 range, it will confirm the establishment of a short-term reversal, and the previous resistance zone will transform into an important support zone.
If gold prices further break through the next resistance zone of $4,450–$4,500, they will subsequently challenge the $4,650–$4,700 level. In addition, both the RSI and MACD indicators show further strengthening momentum, but the RSI currently remains below the overbought threshold.
The report noted that in its late June report, the bank had pointed out that a breakout of gold prices above $4,250 would be a strong signal of a bullish reversal.
