Gold prices extended gains on Monday, trading near $4,650, the highest since mid-May, following a breakout above the 200-day simple moving average. The move reinforces the near-term bullish bias, with the metal tracking the upper Bollinger Band.
Analysts note that the rally is approaching a significant technical barrier at the 50% Fibonacci retracement of the decline from the record high, which could cap further upside in the short term. Momentum indicators remain positive but show signs of fatigue, with the Relative Strength Index holding steady at overbought levels, suggesting the market may consolidate before resuming its advance.
In a bullish scenario, a sustained move above initial resistance around $4,680 could open the path toward the 61.8% Fibonacci extension at $4,850 and the psychological $5,000 mark, according to the analysis. Conversely, a decisive break below $4,600 would undermine the current uptrend and shift focus to the $4,500 support area.
