The yellow metal's price became highly volatile and eventually passed below the support zone of 1,778.60/1,782.70, which kept the rate up since November 23. The high volatility was fueled by the US Federal Reserve Chairman Jerome Powell giving a testimony to the US Senate.
Despite the passing below the support zone, the price for gold recovered above the zone and resumed to use it as support at the start of Wednesday's US trading. Meanwhile, the recent volatility revealed a channel down pattern, which appears to have guided the price since November 24.
In the case of the bullion's price surging, it would have to pass the 50 and 100-hour simple moving averages near 1,790.00. Afterwards, the 1,800.00 mark might act as resistance. Above the 1,800.00 level, the 200-hour SMA and the upper trend line of the channel down pattern could keep the metal down.
On the other hand, a decline is highly likely going to find support in the 1,778.60/1,782.70 zone. Below the zone, round price levels could act as support until the price reaches the lower trend line of the channel down pattern.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.