Gold Prices Break Out Above Key EMAs

Gold prices have broken out of their consolidation pattern and are trading above both the 50-day ($4,183) and 100-day ($4,136) EMAs.

The price action is currently bullish with larger candles, but the momentum has produced smaller candles against the $4,368 resistance level.

Gold's broken descending trendline has shifted the former resistance level of $4,299 to support, while meeting resistance at $4,368 and future resistance at $4,430 and $4,492.

The RSI for gold is around 71, indicating that it is in the overbought zone, making a consolidation or pullback more likely.