Gold Bulls Maintain Control Despite Overbought Market Signals

Fawad Razaqzada, market analyst at FOREX.com, notes that the U.S. Treasury’s strategy to purchase long-dated bonds is working to stabilize the yield curve, potentially softening the intensity of the debasement trade. Despite this, gold continues to hover near $4,601.60 an ounce. Razaqzada suggests that unless bond yields experience a significant decline, investors should view any pullbacks as opportunities for entry.

Technically, gold is currently testing a resistance zone between $4,655 and $4,700, a region that historically sparked selling pressure in May. While the market has seen minor profit-taking, the structural outlook remains positive, with the price holding above both the 50-day and 200-day moving averages. Key support levels to monitor sit at $4,515 and $4,400. According to Razaqzada, the burden of proof rests with the sellers, who have struggled to regain dominance since failing to force the metal below the $4,000 threshold.