Gold pushing higher, currently at $XAUUSD 4185.78. My oscillators are showing some bullish divergence on the daily chart even with the recent consolidation. Could this be the start of a more sustained rally, or is it likely to run into resistance at the next major pivot point around 4200?
I'm more inclined to think it's a short-term bounce within a range. Unless we get a clear break above 4220 with conviction, I'd be cautious about calling it a sustained rally.
Daily divergence on gold can be powerful, but context is key. What's the broader market sentiment like? Are we seeing any geopolitical catalysts brewing?
Could be. But let's not forget the recent strength in the dollar; that could put a cap on any significant gold rally, regardless of the divergence.
I'm seeing that divergence too, it's definitely interesting. The 4200 level will be a real test though, that's where I'd expect some sellers to step in.
Bullish divergence is a good sign for sure, but sometimes these setups need a bit more confirmation on the lower timeframes before truly committing. I'd watch for follow-through.