Gold buyers seek re-entry but road towards north is long and bum

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold braces for the first weekly gain in five while bouncing off the multi-month low marked earlier in the week, piercing the 200-DMA of late. The upside bias gains credence from a looming bull-cross on the MACD, as well as a recovery in the RSI (14) line from the oversold territory. However, a nine-month-old previous support line, close to $1,950, precedes a downward-sloping resistance line from early May, around $1,955 at the latest, to restrict the short-term upside of the XAUUSD. Also acting as a barrier towards the north is a three-month-old horizontal resistance area surrounding the $1,985 and the $2,000 psychological magnet. In a case where the metal remains firmer past $2,000, the yearly high of around $2,067 will be in the spotlight.

On the flip side, the recent low of around $1,885 holds the key to the Gold seller’s entry. Following that, the early-March swing high of near $1,858 and the YTD bottom around $1,804, quickly followed by the $1,800 threshold, will challenge the XAUUSD bears. Should there be a sustained downtrend of the bullion past $1,800, the November 2022 peak of around $1,767 will act as the final defense of the buyers.

Overall, the Gold Price is likely to recover but the reversal of the multi-day-old bearish trend is still unclear to predict.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.