Gold Price Analysis: XAU/USD eases from $1,911/12 resistance confluence
|- Gold fades upside momentum while stepping back from the intraday high of $1,910.72.
- 200-bar EMA, 50% Fibonacci retracement of September’s downside limit immediate upside.
- Three-week-old support line restricts short-term declines below the $1,900 threshold.
Gold prices drop to $1,906.55, down 0.10% intraday, during early Friday. The bullion previously surged to Wednesday’s high but couldn’t clear a joint of the key EMA and Fibonacci retracement level.
However, normal RSI conditions and sustained trading above an ascending trend line from September 24 keeps the metal buyers hopeful.
As a result, the October 06 high near $1,921, followed by the 61.8% of Fibonacci retracement around $1,926 can pop-up on the gold bull’s radar after clearing the $1,911-12 immediate upside hurdle.
It should, however, be noted that the quote’s upside past-$1,926 will be questioned by the $1,932-33 area comprising late-September lows and the current month’s high.
Meanwhile, the $1,900 round-figure may entertain the intraday sellers ahead of probing them with a nearby rising support line, close to $1,891.
Though, a sustained break below $1,891 will make the gold prices vulnerable to plunge towards the monthly bottom around $1,873.
Gold four-hour chart
Trend: Further upside 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.