Gold Price Analysis: XAU/USD bulls await clear break of $1,981
|- Gold prices struggle to keep recoveries following second failure to cross $1,981.
- RSI conditions suggest cooling of the bull-run for a while.
- 100-HMA, weekly ascending trend line offers immediate strong support.
Gold prices recede to $1,968.60 amid the early Asian session on Thursday. The yellow metal recently surged to $1,980.89 but couldn’t refresh the record top of $1,981.34, making a ‘double-top’ around $1,981.
With the RSI conditions challenging further upside, coupled with the strong resistance near $1,981, sellers may sneak in for short-term gains. In doing so, a confluence of 100-HMA and an upward sloping trend line from July 22, close to $1,933/32, becomes important.
If the bears manage to snatch back the rein and dominate below $1,932, the $1,900 threshold and 200-HMA level of $1,886 will be on their radars.
Meanwhile, an upside clearance of $1,981 will quickly renew the north-run targeting $2,000 psychological magnet.
Further, 61.8% Fibonacci retracement of the precious metal’s rally from mid-2001 to late-2011, around $2,077, could lure the optimists afterward.
Gold hourly chart
Trend: Pullback expected
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.