June 26,2025
24 Karat Gold
Gold has been rising recently, due to international tensions, global uncertainties, weaker dollar and more. Although it is hitting multi-month highs, the yellow metal's upward momentum appears to be losing steam. With prices moving within a narrow range, traders are beginning to wonder if this uptrend can sustain its momentum. This blog will cover five technical indicators to watch out for in the gold market. This knowledge will help you in deciding whether to sell during rallies or look for the right entry point before committing to a position in gold.
The price of gold has been fluctuating upwards and downwards within a certain range recently. The price is not exploding in either direction, but it is just bouncing around between the high and low levels. This is consolidation where buyers and sellers are nearly equally strong and the market waits for a big event or news to decide the next step.
Think of it as an unending tug-of-war in which neither side is currently winning.
If prices are swaying like these, big breakouts usually do not last unless something major happens (like news about the economy or global events). It is therefore risky to anticipate a huge price increase unless there is a strong reason behind it.
Also Read:-New Scientific Study Reveals Mysterious Origins of Gold
If gold is rising towards the upper end in its range, it could be a suitable moment to sell. But ensure you place a strict stop-loss in case it goes higher. This reduces the risk of being caught out by false breakouts.
The RSI is a measurement tool that traders use to gauge the strength or weakness of the price movement. At this moment, gold's RSI is at the middle range, which is between 55 and 60. This means that the price is not either too high or low. The price depicts moderate power, but not anything dramatic.
Also Read:-Incorporating Gold into Financial Planning: A Smart Move for Indian Households
An RSI within this range informs us that gold does not have the strength to go much higher. But it is not strong enough to make it crash. It is sort of in a wait and see zone.
If the RSI gets closer to 70, this usually means that the market is overbought. Prices could have risen excessively, and too quickly. If this happens gold might be able to pull back or even drop a bit.
If you are holding gold, or considering selling it, keep an eye for the RSI. A reading of 70 or higher could be a great time to sell before a possible decline.
Also Read:-Gold and Nanotechnology: Innovations in Healthcare
Moving averages are tools that help traders understand the market direction by displaying the average price over a certain number of days.
At the moment the gold's daily moving averages - like the 8-day and 21-day EMAs, are becoming closer or staying flat. This usually means that the uptrend is slowing, and the price might not rise further.
There is evidence that the fifty-day moving average (SMA) that most traders across the globe watch is acting as a ceiling. Gold is struggling to rise above it, which indicates that there is a strong resistance at this point.
When the 8-day EMA goes below that of the 21-day EMA. It is typically an indication that the trend may be becoming weaker. In the same way, when gold is not able to move over its 50-day SMA, this suggests that the price rally may be stalling.
These indications suggest that gold might not rise much in the short term. It is wiser to sell at times when prices are rising, particularly when they are stuck between these moving average lines.
Also Read:-How The U.S. Dollar Affects Gold Prices: Understanding The Relationship
Traders use tools like MACD and Bollinger Bands to determine the strength or weakness of an investment. These tools exhibit evidence of decreasing momentum in the gold.
There is a sign that MACD (Moving Average Convergence Divergence) is appearing weak. Sometimes, it shows indications that prices are increasing, but the force of the reason is not clear. This is known as bearish divergence and indicates that fewer buyers are entering.
The Bollinger Bands, which typically expand during large price swings, are shrinking. This suggests that the market has been steady and moving in a lateral direction, with no significant upward or downward pressure.
If the price cannot break above the top of Bollinger Band during a rise, this shows that the trend might be running out of steam. Combine this together with weak MACD, which indicates that the momentum is diminishing.
Also Read:-How to Negotiate When Selling Gold and Silver Coins
If gold prices increase but these tools remain steady or weak. This could be a good time to sell at a time of strength - before prices begin to fall again.
If we compare the price of gold with other assets, such as the price of crude oil, silver, and copper, it appears costly. These comparisons - also referred to as ratios - are more expensive than normal. This means that gold is rising more quickly than other commodities.
Gold is trading around 20% higher than its 200-day average - this is quite a leap. It could indicate that it may be overvalued or because prices have risen excessively and too fast.
Also Read:-What Are the New Gold Rules in India 2025? A Complete Guide for Buyers?
When gold is this far ahead of other investments and its long-term average it generally stops for a moment. This can mean that prices shift sideways for a time or slow down a bit to let it cool down.
It doesn't mean that gold will be crashing, but it's a signal that we may not get huge gains from this point in the near term. Therefore, instead of assuming the price of gold to rise, prepare yourself for the possibility of a slowdown or a slight decline. This can be a perfect moment to secure gains that you have purchased at lower prices.
Gold recently hit its highest price in a few months due to global uncertainty, trade tensions, central bank buying, and the lower dollar. All of these factors typically lead investors toward gold to be a secure location to store their money.
But, even though prices are increasing, there has been no energy to push the gold price higher. The indicators on the technical side are indicating that the price rally is slowing down instead of gaining momentum.
At the moment, cautious traders are seeking opportunities to sell as prices rise or wait for better signals before deciding to purchase gold. They want to ensure that their next move is worthwhile before they jump in.
Also Read:-Physical Gold vs. ETFs vs. Mutual Funds: Which Is the Better Investment?
The gold rally might be losing momentum, but it is important to stay informed about new gold rules in India 2025 and strategic with your trading decisions. When considering selling your gold, 24Karat is a trusted gold jewellery buyer in Delhi who can offer you the highest value for gold. If you are cashing in on a rally or simply looking to sell, you can trust them to provide a fair and transparent deal. Get an instant valuation for your gold today!
Gold is consolidating because, though there are global uncertainties, it does not have the momentum to break out, and technical indicators point to dwindling strength.
An RSI reading of 55-60 indicates moderate momentum, which means gold is not strong enough for a major rally but is not on the brink of a breakdown either.
Moving averages are exhibiting flat or converging trends, reflecting fading upside momentum and potential resistance at major levels.
Also Read:-Why Indians Buy Gold on Dhanteras: A Tradition Ahead of Diwali 2024
 (1).png)
