XAU/USD: The bulls regain command following a comeback from June's low of 1805.2
|XAU/USD rose 528 pips from its low in June.
On the one-hour chart, the 50 Moving Average (MA) passes above the 100 period.
The Relative Strength Index (RSI) maintains neutral territory with climbing momentum.
The precious metal edged higher in the initial European session after the tumble that occurred in the Asian session. Gold gained strength after a rejection from the June low level. At the time of writing, XAU/USD was trading at 1845.31, down 0.35% for the day.
XAU/USD rebounded 528 pips from its June low, retracing some of the losses that occurred at the beginning of the current week. However, the yellow metal bear trend regained control, bringing the price back near the May 23rd, high levels.
XAU/USD one-hour chart
On the one-hour chart, a positive sign occurs when the 50 Moving Average (MA) passes above the 100 period. The interpretation of the (MA) supports gold's bull trend continuing in the near future. On the other hand, the Relative Strength Index recorded 61.23 on the value line with ascending momentum, indicating more upside potential is expected before the RSI enters the overbought zone.
The XAU/USD at the current time encounters resistance at the 1850.31 level. A successful close of the one-hour candlestick at the aforementioned level would pave the way towards today’s high level of 1857.23. Additionally, the previous mentioned level serves as a resistance level. Closing above that level may bring the 1862.87 level to the eyes.
Alternatively, if the current resistance level could prevent the price from rising higher, that would open the door towards 1841.62, today’s low, followed by the 1840.58 hurdle. The market participants may see 1836.41 if the price falls below the aforementioned level. A decisive breach will pave the way towards the 1830.72 support level.
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