Economists at Société Générale have provided insights into the technical outlook for Gold (XAU/USD), suggesting that a recent pause in its upward trajectory is expected to be short-lived. Following a breakout above a multi-year rectangle pattern, indicating a resumption of its uptrend, Gold experienced an initial pullback after encountering an interim hurdle around $2,230 last week.
However, there are no clear signals indicating significant downside potential, with analysts highlighting the crucial support zone ranging from $2,075 to $2,065. The weekly Moving Average Convergence Divergence (MACD) indicator remains within positive territory, signifying the prevailing upward momentum in the market.
According to Société Générale, the uptrend in Gold is anticipated to persist, with potential objectives located at $2,250 and projections extending to $2,360. The target for the rectangle pattern is estimated near $2,460, indicating further upside potential for Gold in the near term.
