On Monday (February 17), spot gold maintained a strong intraday rally, and the current gold price is near £2,903 per ounce, up more than £20 during the day.
Gold price trading analysis: From a technical point of view, the Relative Strength Index (RSI) on the daily chart has retreated from the overbought zone, while other oscillators remain positive.
This, in turn, confirms the constructive outlook for gold prices in the near term and supports the prospect of further upside.
On the upside, any subsequent strength in gold could face hurdles near the £2,925/oz level area and then all-time highs around £2,942-£2,943.
If gold gains some follow-on buying and breaks out of the latter, it will be seen as a new fuse by the bulls and pave the way for the continuation of the recently established uptrend seen over the past two months or so.
On the other hand, the £2,885/oz area is likely to provide short-term support followed by the swing lows reached last week (around the £2,855/oz area).
A further decline in gold could be seen as a buying opportunity around £2,834, an area that should help limit the downside and a break below this area could see gold fall to around £2,815.
After that, gold will target the £2,800/oz mark and the £2,785-£2,784/oz support level, and a decisive break below these levels will set the stage for a meaningful corrective decline.
The author believes that against the backdrop of continued weakness in the US dollar, gold regained upward momentum on Monday. Fears of Trump tariffs further favour the safe-haven asset gold.
Fundamentals and technical conditions are underpinning further gains in gold prices.
At 23:00 Hong Kong time, spot gold was at £2,900.60 an ounce.
Author: Zhou Tong (Analyst) 17-02-2025
#The above is only the author’s personal opinion and has nothing to do with the company’s position.
#The policy recommendations are for informational purposes only, there are risks in entering the market, and investment needs to be cautious.