Westpac: New Rally Begins in Gold, Losses to Be Erased

The news headline highlights expectations of a new rally, which could create a positive short-term sentiment. On the technical indicators, the RSI at 51 is in neutral territory, while the MACD gives a bullish crossover signal above the signal line. Although the SMA20 being below the SMA50 indicates short-term weakness, the latest close above the SMA20 supports recovery potential. Despite a 1.37% decline in the last 24 hours, the news and MACD signal point to an upward move in the short term. However, caution is warranted due to the SMA50 resistance and overall market conditions.

The news headline supports expectations of a new rally, which could create a positive short-term sentiment. Technical indicators partially support this view: although the RSI is approaching overbought territory at 72, the MACD remains above its signal line and positive, indicating continued upward momentum. The price is trading above the 20- and 50-day moving averages and has gained 5.5% in the last 24 hours. However, the elevated RSI also brings a risk of a short-term correction. Therefore, while maintaining a bullish outlook, excessive optimism should be avoided.