Gold Price Analysis: Acceptance above $2050 critical to revive XAU/USD’s uptrend
|- Gold’s record-breaking rally could resume on a sustained move above $2050.
- RSI on 4H chart stays in the bullish territory, pointing to the upside.
- XAU bulls to buy the dips around $2010 in the week ahead?
The overbought conditions and price-Relative Strength Index (RSI) bearish divergence on gold’s (XAU/USD) daily chart prompted a sharp $60 correction from record highs of $2075 on Friday.
The yellow metal managed to recover from the two-day lows of $2015 but settled the week below the psychological $2050 level. This could warrant come caution for the bulls in the week ahead.
However, the Relative Strength Index (RSI) on the four-hour (4H) chart remains tilted to the upside above the midline at 54 levels, keeping the buyers hopeful.
The uptrend is likely to regain traction should the bulls fight back control over the upward-sloping 21-Simple Moving Average (SMA) at $2040.
Above that level, the $2050 level will test the bulls’ commitment. The next resistance awaits at $2065 levels, as the life-time highs and beyond remain on the buyers’ radars.
Alternatively, if the rebound loses steam, the rising trendline support at $2010 could be put to test. A breach of the latter will validate the rising channel formation calling for the extension of Friday’s corrective declines.
The bullish 50-SMA at $1998 could offer immediate support while closing below the 100-SMA at $1933 could possibly dim prospects for fresh upside.
Gold: XAU/USD 4-hour chart
Gold: XAU/USD additional levels to watch
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