Gold Price News and Forecast: XAU/USD - The support of a 10 week uptrend at $1585 today
|Gold Analysis: Could soon surge
After touching the 1,625.00 level for a second time on Wednesday, on Thursday, the commodity returned to trade near the 1,650.00 mark.
In regards to the near term future, the metal was expected to end trading in this week's range and surge, as on Thursday, the resistance of the 55-hour simple moving average was broken. In addition, the 200-hour SMA had reached the 1,625.00 level, removing a part of the overbought pressure.
On the other hand, the bullion could trade sideways until the 200-hour SMA reaches the 1,650.00 level.
Gold: The support of a 10 week uptrend at $1585 today [Video]
The gold buyers may have lost the momentum of their bull run, but we continue to expect weakness to be seen as an opportunity. The retracement has become rather choppy in the past 48 hours, but there is a basis of support around the 23.6% Fibonacci level (of $1445/$1688) around $1631. To yesterday’s low, the unwind has been $63 from the high (becoming comparable to the $75 unwind in January). It seems as though there is still an appetite to buy gold, judging by the overnight rebound once more, which has supported the market at $1625.
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