Gold Consolidates Amid Overbought Conditions

Overbought Market and Limited Upside

Despite ongoing geopolitical risks and expectations of lower interest rates, gold's ability to sustain further gains is hindered by excessive bullish sentiment among investors. According to analysts, the market is currently "overbought," with speculative positions reaching extreme levels. This suggests a potential for a price correction in the near term.

Technical Outlook

Gold remains within a range, indicating indecision among market participants. A decisive break above the upper boundary of the range could signal a resumption of the uptrend. However, a move below the lower boundary would increase the likelihood of a more significant correction.