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?
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.
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?
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.
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.
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.