XAUUSD down

Nov 21

Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.The short-term technical outlook for Gold price appears to lean in favor of buyers as the 14-day Relative Strength Index (RSI) prods the 50 level to the upside. The indicator is currently just above 50.

However, an impending Bear Cross could be a headwind for Gold price. The 21-day Simple Moving Average (SMA) is closing in to cut the 50-day SMA from above. If that happens on a daily closing basis, it will validate the bearish crossover.

Gold buyers need a daily candlestick closing above the 50-day SMA at $2,660 to unleash additional recovery toward the 21-day SMA at $2,680.

The $2,700 threshold will be the next significant target for buyers.

Conversely, failure to find acceptance above the 50-day SMA at $2,660 on a daily closing basis could reinforce sellers toward the $2,600 threshold.

Tuesday’s low of $2,610 will be tested ahead of that.