Chart of the Week, gold: XAU/USD bulls moving in, carving out bullish structure

Gold bulls are taking on the bears at critical resistance.
A break of the $1,970s opens risk to the $2,010 key level.

Ross J Burland FXStreet

As per the prior week's analysis, Chart of the Week, Gold: XAU/USD is pressured for the open, where the near term resistance was identified and highlighted as a significant feature of the daily chart, the bulls have moved in to challenge bear's commitments there. This leaves the outlook bullish for the week ahead, but a restest of the old resistance and bullish commitments will be needed to add conviction to the upside bias.

Gold, prior analysis, daily chart

As per the chart above, the price of gold has gone on to test the resistance as follows:

As illustrated, the price has broken newly formed resistance and is now testing the prior resistance. The bulls are in the running for a bullish start to the week and a break of the $1,970s will likely seal the deal for an upside extension for the week ahead.

The M-formation was a pattern identified in the prior analysis:

This is a reversion pattern and the neckline of the formation would be expected to lure in the price. A break of the March 10 highs, near $2,010, will clear the path for 'blue skies'.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Japanese Yen weakens to two-year lows, targets 162.00

USD/JPY extends its advance well north of the 161.00 barrier on Thursday, always on the back of the continuation of the US Dollar's post-Fed rebound and despite warnings from the BoJ of a potential intervention at any time. Next on the upside for spot comes the July 2024 peak in levels just shy of 162.00 the figure.

Australian Dollar remains in positive territory after paring recent gains

AUD/USD pares its daily gains, remaining in the positive territory and trading around 0.7010 during the European hours. The pair appreciated as the Australian Dollar received support from prevailing hawkish sentiment surrounding the Reserve Bank of Australia’s policy outlook.

Gold drops to daily lows near $4,200

Gold struggles to attract buyers on Thursday, trading closer to the $4,200 mark per troy ounce. The yellow metal adds to Wednesday’s pullback and slips back to multi-day lows in response to the stronger US Dollar following the Fed’s hawkish hold on Wednesday.

Crypto Today: Bitcoin, Ethereum and XRP pare losses on increasing bets of Fed tighter monetary policy

Cryptocurrency prices are broadly moderating downwards on Thursday, as market participants assess the impact of the Federal Reserve’s (Fed) hawkish monetary policy stance.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.