(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

Gold Begins Its Comeback, But The Road Ahead Looks Rocky

Article background

Aayush Jindal

Key Highlights

  • Gold found support at $3,870 and started a recovery wave.
  • There was a break above a bearish trend line with resistance at $4,000 on the 4-hour chart.
  • WTI Crude Oil failed near $105.00 and corrected some gains.
  • GBP/USD remained elevated and might extend gains above 1.3500.

Gold Price Technical Analysis

Gold extended losses below $4,000 before it found support against the US Dollar. A low was formed at $3,870 before the bulls took a stand.

The 4-hour chart of XAU/USD indicates that the price started a fresh upward move and climbed above the $3,975 resistance. There was a clear move above the 50% Fib retracement level of the downward move from the $4,082 swing high to the $3,870 low.

However, the bears might remain active near the 100 Simple Moving Average (red, 4 hours) at $4,070. The first key resistance could be $4,080.

The main resistance might be $4,140 and the 200 Simple Moving Average (green, 4 hours). A clear move above $4,140 could open the door for more upside. In the stated case, the bulls could aim for a move toward $4,220.

If there is a fresh decline, the price could test $3,975. The first major support sits at $3,920. The next support could be $3,870, below which the price might slide to $3,800. Any more losses could clear the path for a test of $3,500.

Looking at WTI Crude Oil, the bulls failed to clear the $105.00 resistance, resulting in a short-term bearish reaction.

Economic Releases to Watch Today:

  • BoE Interest Rate Decision - Forecast 4%, versus 3.75% previous.
  • US Initial Jobless Claims - Forecast 200K, versus 199K previous.
Excellent
Google Reviews
Open a Live accountOpen a Demo account
Loading