XAU/USD outlook: Gold hits one-month high on probe through strong $3.400 resistance zone
|XAU/USD
Gold cracked $3400 barrier in fresh acceleration that pushed the price to the highest in almost one month, dragged by today’s strong rise in silver price
Probe through significant barriers at $3400 zone (former recovery top / psychological / Fibo 76.4% of $3500/$3120 correction) is about to generate fresh bullish signal, which requires close above these barriers to be confirmed.
Technical picture remains bullish on daily chart, although overbought conditions are likely to provide more headwinds to fresh bulls.
Dips from new high ($3403) were so far shallow, with supports at $3384/80 zone (yesterday’s high / hourly lower platform / rising 10HMA) to hold dips and keep immediate bulls intact.
Sustained break of $3400 zone to signal continuation of recovery leg from $3120 towards $3437 (May 7 lower top) and key $3500 barrier in extension.
Pivotal supports lay at $3361/55 (Wednesday’s low / broken Fibo 61.8%) loss of which would weaken near-term structure and signal a false break higher.
Res: 3403; 3410; 3437; 3450.
Sup: 3380; 3365; 3355; 3343.
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