Gold pushed to a fresh multi-year high near $4,441.65 on Aug. 10, clearing the mid-June peak and extending a four-day rally that has also lifted oil. Momentum gauges on the metal's five-hour chart have swung into overbought territory just as Brent's own advance adds pressure to the move.
Gold reversed early losses to notch a session high of $4,382 on Aug. 10, clearing the market's mid-June peak. The rebound pushed further as the session progressed, with the metal touching a fresh multi-year high near $4,441.65 on its five-hour chart.
The advance marks four straight days of gains in both gold and oil, a pairing InvestingLive called rare, coming alongside U.S. intervention in the yen and renewed tension over Iran strategy.
Even so, the rally leaves gold far from February's $5,500 high. The pattern so far underscores a $4,000 floor for the metal, InvestingLive said.
Oil's Advance Complicates the Picture
Oil's 5% rally on the day complicates gold's advance, since prolonged crude strength tends to weigh on the metal, InvestingLive said. That risk would not turn acute unless Brent climbs toward $90 to $95 a barrel. Brent traded near $87 a barrel at the time.
Momentum Turns Overbought
The advance has pushed the RSI, a gauge of buying and selling momentum, above the threshold traders read as overbought. The reading touched 79.7 on the five-hour chart, a level Investing.com's live-levels tracker described as nosebleed territory.
Gold's trend gauge, the ADX, reads 45.5 — a level the tracker flagged as a powerful uptrend. The metal also trades nearly 7.5% above its 200-period moving average, a stretch the tracker said gold reaches only once every few years.
The advance now sits just under the 61.8% Fibonacci resistance at $4,437.07, a technical hurdle for the rally.
Sources: InvestingLive, Investing.com
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