Technical movements in gold prices

Gold prices rose today, reaching a new historic high of around $4,967 per ounce. Gold prices are now trading within an upward price channel on the four-hour and hourly charts. After reaching the historic peak, prices began a cautious downward correction in an attempt to reach the lower limit of the price channel on the hourly chart under the influence of negative divergence on the MACD indicator.

We expect it to retreat towards $4880/70 per ounce, from where it will resume its rise towards $5000 and then $5050, just waiting for any rebound with a reflective candle from the lower limit of the downward price channel.

However, if the channel breaks directly downward, we expect the corrective decline to continue towards the lower limit of the main upward price channel on the four-hour chart towards $4700 and before that $4800 per ounce.

From there, we expect it to rise again in its upward trajectory towards $500 per ounce.