Gold's Potential Unshaken as XAU/USD Ignores US Yield Rise
Updated
Following its most significant weekly gain since January, gold has continued to rise for a second consecutive week, reaching a three-month high above $980 USD, driven by safe-haven demand. The economic reports due next week will provide high-impact data releases that could influence XAU/USD's movements, but investors may be more focused on headlines surrounding the Israel-Hamas conflict.
The Relative Strength Index (RSI) on the daily chart has risen above 70, highlighting overbought technical conditions for gold for the first time since March. In the event of a technical correction for XAU/USD, $1,960 (the 23.6% Fibonacci retracement of the latest uptrend) is considered the first support before $1,930-$1,920 (200-day Simple Moving Average, 100-day SMA). Closing below that support zone could deter buyers and open the door to a broader price decline towards $1,900 USD (the 38.2% Fibonacci retracement, a psychological level).
On the upside, gold may encounter strong resistance at $2,000 USD (a psychological level, a static level). If XAU/USD climbs above this level, technical buyers could act, pushing for further gains to $2,020 USD (a static level) and $2,040 USD (a static level).
The Relative Strength Index (RSI) on the daily chart has risen above 70, highlighting overbought technical conditions for gold for the first time since March. In the event of a technical correction for XAU/USD, $1,960 (the 23.6% Fibonacci retracement of the latest uptrend) is considered the first support before $1,930-$1,920 (200-day Simple Moving Average, 100-day SMA). Closing below that support zone could deter buyers and open the door to a broader price decline towards $1,900 USD (the 38.2% Fibonacci retracement, a psychological level).
On the upside, gold may encounter strong resistance at $2,000 USD (a psychological level, a static level). If XAU/USD climbs above this level, technical buyers could act, pushing for further gains to $2,020 USD (a static level) and $2,040 USD (a static level).
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