Gold Price Analysis: XAU/USD consolidates gains above $1,800 inside immediate rising channel
|- Gold bulls catch a breather after refreshing the multi-year top beyond $1,800.
- The upper line of a two-day-old ascending trend channel holds the key to late-August 2011 highs.
- An upward sloping trend line from July 06 adds to the downside barrier.
Gold prices seesaw around $1,818/17 during the early Tuesday morning in Asia. The yellow metal surged to the fresh high since September 2011 the previous day. Favoring the buyers was a sustained break above $1,815/16 horizontal area comprising multiple highs marked since July 09.
With the bullish MACD joining the successful trading past-$1,815, the bullion optimists are less likely to step back. As a result, the quote could remain direct to the north with the upper line of an immediate ascending channel, at $1,823.10, acting as nearby resistance.
If at all the commodity manages to defy the channel formation and rise further, August 30, 2011 peak surrounding $1,840 will be in the spotlight.
Alternatively, a downside break below $1,815 is less likely to recall the bears as the support line of the mentioned channel, currently around $1,813, could question further downside.
Also acting as strong immediate support will be a two-week-old ascending trend line, at $1,801.50, closely followed by the $1,800 threshold.
Gold four-hour chart
Trend: Bullish
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.