Gold Price Analysis: XAU/USD buyers catch a breather around weekly resistance line
|- Gold eases from the intraday high of $1,920.58.
- Sellers will look for entries below a three-week-old support line.
- Monthly top offers an additional upside hurdle to the bulls before the key horizontal resistance.
Gold steps back from the intraday top while declining to $1,917.28 during the pre-European session on Wednesday. Even so, the bullion marks 0.57% intraday gains while keeping its upside break of 200-bar SMA.
With the strong RSI conditions, not near the overbought levels around 70, favoring the commodity’s further upside, gold buyers can easily overcome the $1,921 immediate hurdle.
However, the monthly high near $1,933 can probe the bulls afterward, which if broken can direct the gold prices towards the mid-September high, also comprising multiple peaks marked since the late-August, close to $1,973/74.
Meanwhile, 200-bar SMA near $1,912 precedes the $1,900 threshold to challenge short-term sellers. Also acting as the immediate key support is an upward sloping trend line from September 28, at $1,897 now.
Should the gold bears dominate past-$1,897, the current month’s low near $1,873 could regain market attention.
Gold four-hour chart
Trend: Bullish
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