The futures gold re-energizes its upward trajectory against a critical resistance level

The futures-traded gold on the Comex market shows signs of a bullish rebound, according to recent analyses. Jin10 reports that Joseph Chai, an analyst at RHB Retail Research, detects a positive technical consolidation. The futures contracts for the yellow metal currently benefit from support provided by the 20-day simple moving average, a key indicator of medium-term trend.

Technical Structure Reveals a Tight Scenario

The daily chart of the futures contracts demonstrates that gold is able to rely on its key technical support represented by the 20-day moving average. This support suggests some resilience on the buyers’ side. However, the momentum remains fragile and dependent on short-term developments. Analysts are closely monitoring the market’s ability to maintain this technical support amid an environment of uncertainty.

The $5,090 per ounce Threshold: a Breakpoint for Reversal or Consolidation

The resistance level at $5,090 per ounce represents a major inflection point for gold’s future trajectory. Joseph Chai emphasizes that this zone shows substantial selling pressure, typical of well-established resistance levels. The analyst specifies that if gold cannot close above this resistance, a bearish bias may establish itself in the market for the long term. Bearish technical setups generally find their foundation around such breakpoints.

Risks and Outlook for Traders

The interpretation of whether gold surpasses or stalls at the $5,090 level is crucial for futures markets. A breakout above would reignite the bullish momentum, while a retreat would reinforce sellers’ control. Futures contracts remain at the heart of a critical phase where technology and market psychology converge to dictate short-term price directions.