XAU/USD outlook: Gold steadies near $2,400 barrier
|XAU/USD
Gold regained traction after a $100 per ounce pullback from new record high last week and pressuring again psychological $2400 barrier.
Overall sentiment remains positive as geopolitical tensions and fears that the conflict in the Middle East can escalate, continue to fuel safe-haven demand and offset pressure on metal’s price from higher dollar.
Recent pullback, despite being sharp, was limited and contained by rising 10DMA (currently at $2351), keeping larger bulls intact.
On the other hand, overbought daily studies and RSI bearish divergence, continue to send warning signals, which should not be completely ignored and keep in play risk of deeper correction.
In such scenario, solid supports at $2300/$2283 (psychological / rising 20DMA) should keep the downside protected and mark a healthy correction before fresh push higher.
Break of the latest record high ($2431) to unmask next strong barrier at $2500.
Res: 2400; 2431; 2453; 2500.
Sup: 2374; 2351; 2320; 2300.
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.