The price of gold has recorded a significant surge, reaching an all-time high of 2,354, immediately after the opening of the Chinese market. This growth has been fueled by the positive sentiment among traders, especially after the People's Bank of China (PBOC) announced an increase in gold purchases.
When looking at the H4 chart, we notice that the RSI indicator is oscillating around the overbought level, signaling a positive continuation of the price uptrend. Gold may experience a correction towards the 2,331 level before resuming its strong upward momentum.
However, if the gold price breaks below the support level of 2,331, we might witness a correction down to the 2,305 level and subsequent support zones below. In this situation, the downward momentum could persist, depending on market news and fluctuations.
