XAU/USD outlook: Gold at new record highs above $3,700
|Gold
Acceleration through key $3700 resistance zone pushed gold price to new record high on Monday (price was up 1.1% since opening).
Shallow pullback from previous peak did not harm larger bulls and was just positioning for fresh push higher, as it reversed well above $3600 lower breakpoint.
Revived optimism of more Fed rate cuts (despite less dovish than expected post-FOMC comments from chief Powell) brightened the sentiment, along with complicating geopolitical situation after a few countries recognized the State of Palestine, that resulted in fresh rise in safe haven demand.
In addition, sustained physical buying by central banks continues to underpin yellow metal’s price.
Daily studies remain firmly bullish and supportive for further advance, with immediate targets at $3734 and $3750, guarding $3789/$3800 zone.
Daily close above $3700 is needed to validate positive signal, generated on completion of bullish continuation pattern on daily chart.
Meanwhile, bulls may face headwinds from overbought conditions on hourly and 4-hr charts, with limited dips expected to find firm ground at $3700 zone (reverted to solid support).
Res: 3734; 3750; 3789; 3800.
Sup: 3707; 3700; 3663; 3627.
Interested in XAU/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.