Gold prices extended gains on Tuesday, with technical momentum indicators turning positive as investors assess key resistance levels.
The precious metal has climbed above the psychologically significant $4,400 mark, drawing attention to the $4,443 resistance level. Analysts at Investing.com note that a sustained break above this threshold could open a path toward the next major target at $4,552, representing a potential rally of roughly 2.5% from current levels.
Momentum indicators, including the Relative Strength Index (RSI), have shifted into bullish territory, signaling increased buying interest. The 50-day moving average has also turned upward, reinforcing the short-term uptrend.
The shift in momentum coincides with a weaker U.S. dollar, which typically supports gold prices by reducing its opportunity cost. However, traders remain cautious ahead of key U.S. economic data releases, including nonfarm payrolls and inflation reports, which could influence Federal Reserve policy expectations and gold’s near-term direction.
Support levels remain in focus at $4,350 and $4,300, with a failure to hold these levels potentially triggering a pullback. Market participants will closely monitor whether gold can consolidate gains above $4,443 to validate the bullish breakout scenario.
