Gold braces for consecutive second weekly gain, focus on $2,390
Gold price seesaws at the highest level in a fortnight early Friday, after rising the most in five weeks the previous day. That said, a successful breakout of the 50-SMA and a downward-sloping resistance line from May 20 backed the precious metal’s run-up on Thursday. Apart from that, upbeat RSI and bullish MACD signals also keep the XAUUSD buyers hopeful of witnessing the second consecutive weekly gain. With this, a two-month-old horizontal resistance area surrounding $2,390 gains major attention, a break of which will allow bulls to aim for the $2,400 and the $2,410 levels ahead of challenging the record high of around $2,450.
Meanwhile, a convergence of the 50-SMA and aforementioned trend line stretched from May, close to $2,344 at the latest, appears the key support to watch during the Gold price decline. Following that, the $2,300 threshold and an 11-week-long rising support line of near $2,293 will be the last defense of the XAUUSD buyers. It’s worth noting that the monthly of $2,286 and May’s low surrounding $2,277 will act as additional downside filters before giving control to the bears.
To sum up, the Gold buyers are well in control but the upside room appears limited.
Meanwhile, a convergence of the 50-SMA and aforementioned trend line stretched from May, close to $2,344 at the latest, appears the key support to watch during the Gold price decline. Following that, the $2,300 threshold and an 11-week-long rising support line of near $2,293 will be the last defense of the XAUUSD buyers. It’s worth noting that the monthly of $2,286 and May’s low surrounding $2,277 will act as additional downside filters before giving control to the bears.
To sum up, the Gold buyers are well in control but the upside room appears limited.